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
- Trump to make a decision on Iran. The White House announced the deadlines
- Trump left the G7 summit due to Zelensky and Macron: FT learned the details
- The SBU presented exclusive photos and videos of the prisoner exchange
- North Korea to send 25 thousand workers to Russia: what does it want in return
- The Ministry of Internal Affairs explained how they identify Russian soldiers among the transferred bodies of the deceased
- Ukrainian developers submitted 42 projects for the NATO competition against FPV drones on fiber optics
