Major European stock markets closed lower on Thursday (13/6), following the US Federal Reserve’s latest decision to keep interest rates on hold, as well as US inflation data.
The pan-European Stoxx 600 fell 1.33% to 515.92 points. All sectors closed in the red, with auto parts leading the losses, down 2.4% after hitting a four-month low earlier in the session.
The moves come after a flurry of news from the auto industry this week, notably the European Union’s plan to impose higher tariffs on Chinese companies production of electric cars and UK investigation of emissions claims.
In terms of major European indices, Germany’s DAX lost 1.97% to 18,263.94, Britain’s FTSE 100 fell 0.61% to 8,165.25 and France’s CAC 40 lost 1.99% to 7,708 units. Regionally, Italy’s FTSE MIB fell 2.18% to 33,609.85, Spain’s IBEX 35 lost 1.59% to 11,066.10 and Portugal’s PSI fell 1.44% to 6,565.74
Shares in troubled French IT group Atos fell 0.42% after it announced the sale of its consultancy unit Worldgrid. The company this week entered into a rescue agreement that will further dilute existing shareholders.
Shares in money transfer platform Wise fell 12.75% after the UK fintech cut its full-year growth and margin forecasts.
Investors, on the other hand, analyze the decision of the Fed to keep interest rates in the range of 5.25% to 5.5%, as well as forecasting only a rate cut this year. The Fed’s dot plot shows a more aggressive rate-cutting path through 2025, with four one-percent rate cuts overall.
The Fed’s decision came after the last one measure of inflation in the US. The consumer price index remained unchanged for the month of May, below estimates for a monthly increase of 0.1%. On an annual basis, the inflation index rose to 3.3%, also below expectations. After its meeting, the Fed said that “inflation slowed last year, but remains high.”