On Wednesday, a gauge of European stock exchanges had wrapped up the turbulent day lower following a slew of side-ways swings as investors were waiting for the Fed’s first projection on US economy since the onset of the pandemic outbreak.
Meanwhile, as the Fed nerve had kicked in, the regional pan-European STOXX 600 had wrapped up the day down by 0.4 per cent despite opening the day 0.9 per cent higher, remarking the index’s second straight day of fall as the travel and tourism stocks, which had borne the heaviest brunt in the pandemic-driven economic slump had led the losses on Wednesday’s European market.
Apart from that, a 13.3 per cent nosedive of the Food ordering firm Just Eat Takeaway had plunged the STOXX 600 further after the UK-based firm had been quoted saying that it was in an advanced staged talk with to purchase GrubHub Inc.
in an all-stock deal.
Fed’s Powell pledges to extraordinary fiscal stimulus for years
Although, at the later part of the day, following a two-day meet of the US Fed policymakers, the US Fed Chair Powell had announced a number of extraordinary fiscal stimulus including an at least $120 billion in bond buyback every month, scepticism over Powell’s move had pinned down the balloons of the bloc’s lenders which fell 1.3 per cent despite an early-morning rally.
Citing statistics, on Wednesday’s European market wrap up, the London’s FTSE 100 fell by 0.10 per cent to 6,329.13, Frankfurt’s DAX dwindled 0.70 per cent to 12,530.16, while the French CAC 40 took a header of 0.80 per cent to wind down the day at 0.82 per cent.
Elsewhere in the Europe, Madrid’s benchmark IBEX 35 shed 1.14 per cent to 7,663.90 and Italy’s FTSE MIB faltered 0.86 per cent to round off the day at 19,758.01. Meanwhile, referring to investors’ scepticism ahead of the US Fed decision which appeared to have kept a lid on the bloc’s bullion, a senior market analyst at IG, Joshua Mahony wrote in a client note in European market closure, “European markets are on the back foot once again, despite early gains, with traders fearing that the recent recovery in stocks could see (Fed Chair Jerome) Powell take his foot off the gas. ”