European
shares fell more than two percent on Thursday’s trading, following the Fed's
decision and pessimistic economic outlook, and with economic data forecasting.
As
of 10:14 GMT, the Euro Stoxx 50 index slumped 2.17 percent to trade near
3,221.87 points.
German
DAX 30 index descended by 2.18 percent and now settles near
12,256.56 points, while French CAC 40 reached 4,936.51 points, down
2.29 percent.
Britain’s
FTSE 100 Index slumped to 6,190.62 points, bringing its slump today to
about 2.18 percent.
The
US central bank has kept interest rates unchanged, noting that it does not
expect to raise them until 2022.
The
Fed also predicted that the U.S. economy would contract 6.5 percent in 2020
before expanding by 5 percent in 2021.
Federal
Reserve Chairman Jerome Powell said that moving the interest rate is not an
option, noting that the coming months will be crucial for the economic
situation.
The
Fed is not considering raising US interest rates for the time being, Powell
said at an online press conference following the monetary policy decision
Wednesday.
Powell
added that the Fed discussed the issue of controlling the yield curve on bonds,
saying, "But whether that is useful will remain uncertain."
The
Fed president noted that the surprise of the May jobs report shows how
uncertain the future is.
At
the beginning of the session, the travel sector fell by 5.3 percent, leading
European market losses with the fact that all other sectors started trading
within the red range.
On
the other hand, the development of the corona virus remains a major concern for
the market, with many States of the United States that have reopened yesterday
reported mutations in cases.
Investors
are looking closely ahead, with the eurogroup meeting today with the
participation of the Eurogroup President, finance ministers from member states,
the President of the European Central Bank and the economic and financial
negotiator, to discuss a range of financial issues such as support mechanisms.
At press time, the
EURUSD pair traded higher at 1.1383, while the highest level recorded during
the session was at 1.1401.
