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European stocks skid from 1-month high as Fed underwhelms

Published 2020/09/17, 09:24
Updated 2020/09/17, 09:30
© Reuters.
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Sept 17 (Reuters) - European stocks fell from a one-month closing high on Thursday after an underwhelming response to the U.S. Federal Reserve's pledge to keep interest rates low for a prolonged period.

The pan-European STOXX 600 .STOXX dropped 1.1% by 0710 GMT, on course to break its four-day winning streak.

The U.S. central bank on Wednesday vowed to keep interest rates near zero until inflation is on track to overshoot the 2% target, as expected. However, Fed Chair Jerome Powell said an economic recovery is expected to slow, requiring continued support from further government spending. tech stocks fell the most on Wednesday, while their European peers shed 1.6%. Banks .SX7P , automakers .SXAP and miners .SXPP were the biggest sectoral decliners in Europe, down nearly 2%.

Carmakers Volkswagen VOWG_p.DE , Renault RENA.PA and PSA Group PEUP.PA fell between 2.5% and 3% after industry data showed new car sales fell by 17.6% in August. firm Unibail-Rodamco-Westfield URW.AS slumped 8.5% as it announced a 9 billion euro plan that includes capital raise, to boost its balance sheet.

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