Europe Markets Trade Lower After Fed’s Decision to Keep Interest Rates Unchanged

European stocks have traded lower on September 18 after the Federal Reserve’s decision not to change interest rates, as concerns about the health of the global economy were renewed.

The Federal Reserve made it clear that worries about the global economy had influenced its decision to keep rates on hold.

“The outlook abroad appears to have become less certain,” said Fed chair Janet Yellen, at a news conference.

At lunchtime, the UK’s FTSE 100 was down 66.66 points, or 1%, at 6,120.33.

Bigger falls were seen elsewhere in Europe, with Germany’s Dax index down 2.5% and France’s Cac 40 dropping 2.6%.

Markets could now face a prolonged period of uncertainty as to the direction of US interest rates.

In London, banking stocks saw some of the biggest falls, with Royal Bank of Scotland down 2.6% and Barclays dropping 2.1%.

On the currency markets, the pound rose 0.35% against the dollar to $1.5646, and was up 0.4% against the euro at €1.3684.

Following the Fed’s decision the dollar fell sharply against the yen, dropping below the 120 yen mark. The move hit shares in Japan – particularly among exporting companies – and the country’s Nikkei index closed down 2%.

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

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