European shares fall, Dow futures fall 300 points; traders react to Fed decision

Women wearing facemasks exit the shopping mall, where an entry is posted reminding people of the need for masks, Westfield Santa Anita Shopping Mall in Arcadia, California, on June 12, 2020. Unibail-Rodamco-Westfield shares fell on Thursday.

Stampede j. Brown / Agnes France-Press / Getty Images

European stocks fell and US stock futures weakened on Thursday, with traders in Europe getting their first chance to react to the Federal Reserve decision and its cautious outlook on the world’s top economy.

Stokes Europe 600 SXXP,
1% lost, and the major regional index, the German DAX DAX,
French CAC 40 PX1,
And UK FTSE 100 UKX,
A similar decline was recorded.

Futures on Dow Jones Industrial Average YM00,
DJIA plunges 359 points after slight edge for blue chip
+ 0.13%
on Wednesday. Tech-Heavy Nasdaq 100 NQ00 Futures,
Weak too.

On Wednesday, after the European markets closed, the Federal Reserve said it was planning to keep interest rates at almost zero until at least 2024, as it also said bond purchases should be protected by market conditions and market functioning. Will help in promoting it. Chairman Jerome Powell gave a cautious approach.

“All in all, the changes to the pieces for the Fed’s communication suggest the committee is comfortable with current market conditions and a possible path to recovery. Should the situation worsen, the Fed has given itself some to strengthen existing guidance Has left the place, ”said Bill Divine, senior economist at Dutch bank ABN AMRO.

“The market needs some more time to digest the news because the reality is that the Fed’s message was not so close,” said Naeem Aslam, chief market analyst at Ava Trade. “However, if we have learned anything past [quantitative easing programs], Market participants become irritable when the Fed begins to withdraw from its asset purchase program. On this front, we have no clear and defined timeline. “

The Bank of England is also deciding on interest rates, and is not expected to take dramatic action.

European automakers, including Renault RNO
And Volkswagen VOW3,
Data showing new car registrations fell by 18.9% in August and 5.7% in July. The European Automobile Manufacturers Association said German registrations fell 20% and French registrations fell 19.8%.

UK clothing retailer Next NXT,
+ 1.81%
Rose 2%. On the heels of Inditex ITX’s positive report,
And H&M HM.B,
Next lifted its fiscal year, ending the January forecast, now seeing a £ 300 million pretax profit, up from the previous forecast of £ 195 million. Next said the sale did far better than expected, citing its online business, which had previously offered more than half of its revenue before the lockout, its home, children’s clothing, longwear and sportswear businesses, And its out-of-town stores.

Unibel-Rodamco-Westfield URW,
The operator of the shopping mall reported a 6% drop after the announcement of raising capital of EUR 3.5 billion, as well as plans to limit dividends and dispose of assets worth EUR 4 billion by the end of 2021.

Grenke GLJ,
+ 14.15%,
The German leasing company rose 6% on Wednesday, after falling 40%. Grenke said it strongly rejected accounting fraud allegations made by Viceroy Research, a short seller, and said the German Bundesbank had a credit balance of EUR 761 million on Tuesday.