According to IG, London’s FTSE opened 36 points lower at 6,043, Germany’s Dax opened 112 points down at 13,121, France’s CAC opened 40 points down at 5,022 and Italy’s FTSE MIB opened 206 points lower at 19,745 points.
European markets are set to follow their counterparts in Asia and the US as traders swear by the Federal Reserve to keep rates low for the next few years.
Members of the Federal Open Market Committee indicated that the US could reach the zero limit overnight through 2023 as the central bank tries to spread inflation. In a statement, the committee said: “While inflation has been consistently below this long-run target, the committee will aim to achieve inflation above 2% for some time so that inflation rises 2% over time. ”
Generally, the possibility of lower rates for the long term buys into equity. However, this was not the case on Wednesday. The S&P 500 and Nasdaq both closed at the bottom and the Dow started its season well.
Meanwhile, in Asia, the Bank of Japan held monetary policy steady on Thursday. In his monetary policy statement, Boo said that the Japanese economy has started picking up, but remains “in a critical state” due to the impact of the coronavirus epidemic at home and abroad.
In Europe, investors will be looking for any policy guidance from the Bank of England which is also available on Thursday. Today, no change is expected in the bank’s monetary stance.
On the earnings front, retailers Next and John Lewis Partnership will release interim results, and Keer will release preliminary results throughout the year.
– CNBC’s Estance Huang and Fred Embert contributed to reporting this story.