Stock slump deepens across Europe post-FOMC
|It has been a tough 24 hours for global markets, as the Fed’s cautious turn prompts a unseasonal rout in stocks, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
European markets slide after Fed decision
The shockwaves from last night’s ‘hawkish cut’ by the Federal Reserve continue to reverberate. Investors had hoped for an eventful meeting, but the FOMC’s shift to a more cautious outlook caught the market napping, and the resulting selloff was as quick as it was ugly. Unsurprisingly, European markets have been unable to recover their footing today, unlike the US, where the selling has stopped for now.
No Santa this year?
The drop certainly dented hopes of a Santa rally this year, though perhaps we may still manage a modest bounce. Short-term oversold conditions, and the indiscriminate nature of the selling across global stocks, could mean a bit of bargain-hunting does take place, which might at least lead to a short-term recovery. If nothing else, Jerome Powell has at least delivered a much-needed check to some of the bullish complacency seen among investors of late.
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