European stocks fall on Fed optimism; More central bank decisions expected -September 21, 2023 at 09:26

European stocks fell on Thursday, following losses on Wall Street after the US Federal Reserve announced higher and longer interest rates, and ahead of decisions by the Swiss National Bank, the Riksbank, Norges Bank and the Bank from England.

The pan-European STOXX 600 index was down 0.6% by 709 GMT, and interest rate-sensitive technology stocks were down 0.8%.

Commodity-related sectors such as mining and energy fell more than 1% each, leading to initial losses as metals and crude oil prices weakened against a stronger dollar.

The Federal Reserve kept key interest rates unchanged Wednesday, as expected, and revised up economic projections as it warned the fight against inflation was far from over.

The tech-heavy Nasdaq closed down 1.5%.

Monetary policy decisions are expected from Switzerland, Sweden, Norway and the United Kingdom later today, after the European Central Bank (ECB) raised its key interest rate last week to a record level of 4%.

Britain’s FTSE 100 index fell 0.5% ahead of the Bank of England’s decision on whether to end a series of rate hikes that will extend until December 2021, after data on Wednesday showed an unexpected fall in inflation. (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Savio D’Souza)

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