Breaking News – European stocks slump as tech, miners falls; BOE holds steady

Breaking News - European stocks slump as tech, miners falls; BOE holds steady
Breaking News – European stocks slump as tech, miners falls; BOE holds steady
European stocks traded lower on Thursday as traders reacted to policy announcements from the U.S. Federal Reserve and the Bank of England. The pan-European Stoxx 600 was off by 1.4 percent with all sectors trading in negative territory. The FTSE 100 opened below 7,000 points for first time since December 2016. The index was down by more than 1.3 percent after the Bank of England kept rates unchanged but two policymakers unexpectedly voted in favor of an immediate rate hike. This sent sterling to a fresh seven-week high against the dollar shortly after midday. Technology stocks were among the worst performing sectors. These stocks have been impacted by an ongoing scandal involving Facebook, which broke earlier this week. Mark Zuckerberg admitted Wednesday that the social media network committed mistakes in a data leak that was potentially used for political purposes. The sector was also down on earnings, with United Internet down by more than 8 percent after reporting its 2017 results. Banking stocks were also lower, down by more than 2.4 percent. Though central banks are moving away from their ultra-low rates, an announcement from the Fed on Wednesday proved less hawkish than expected. Looking across the European benchmark, Reckitt Benckiser led the gains, up by more than 5 percent. This was after news that it has concluded talks to buy the consumer health-care business of Pfizer. The Federal Reserve announced the first rate hike of 2018. The central bank presented a 25 basis point hike. At the same time, the Fed said that it is likely that there will be two other rate increases this year and raised the prospects of two more hikes in 2019. The Federal Reserve also increased its growth forecasts for this year and the next. The greenback was slightly lower against a basket of currencies on Thursday morning after posting its largest fall in two months on the Fed’s remarks. Markets had anticipated a more hawkish tone from the central bank. Not a Scientific Survey. Results may not total 100% due to rounding. Meanwhile, President Donald Trump is set to announce tariffs on Chinese imports on Thursday. Furthermore, European leaders are gathering in Brussels for a two-day summit where they are set to condemn Russia for a nerve agent attack in the U.K. and confirm a 21-month transition period before the U.K. departs completely from the rest of the EU.

Breaking News – European stocks slump as tech, miners falls; BOE holds steady