Federal Reserve decision triggered stock decline in Europe.
European stock markets recorded losses due to the negative situation in Asia and the USA following the U.S. Federal Reserve's announcement to reduce its asset purchase program.
The Stoxx 600 index fell by 1.2%, while Asian stock indices dropped by the same amount. U.S. stock indices recovered after the largest drop in the S&P 500 since 2001 ahead of the Federal Reserve meeting.
Accompanied by comments from Bank of Japan Governor Kazuo Ueda questioning the rise in interest rates, the Japanese yen further depreciated. The yen's exchange rate to the dollar reached 156 yen, which is a record low.
Markets anticipate a decrease in interest rates in 2025. A block deal in the options market related to loan rates may benefit from the beginning of the next rate hike cycle next year.
Read also
- The USA has transferred part of the weaponry from Ukraine to the Middle East
- The United Kingdom is deploying fighter jets to the Middle East
- Intelligence named the category of soldiers who are hardest to return from Russian captivity
- Dozens dead in Iran wounded in Israel: how far will the escalation go and who may intervene
- Syrskyi named 'number one goal' for Ukraine's defense
- Have the Russians entered Dnipropetrovsk region? Zelensky revealed data announced at the Headquarters
