European Markets Tumble Amid Central Bank Uncertainty
European markets experienced declines as uncertainty surrounding central bank future moves intensified. The STOXX 600 index dropped amid hawkish stances from the Fed and European Central Bank. Industrial and automobile stocks dragged the market down, while technology stocks showed some resilience with three major U.S. tech firms indicating increased capital spending.
European markets have seen their third consecutive session of declines, largely due to growing uncertainty over central bank actions. The STOXX 600 index fell 0.1% as investors digested a mix of corporate earnings and awaited future monetary policy directions.
The U.S. Federal Reserve's decision to cut interest rates on Wednesday was followed by statements from Chair Jerome Powell suggesting no further reductions this year, which adversely affected market sentiment. European Central Bank's meeting offered no new insights as rates were kept steady.
Industrial stocks were notably affected, with Schneider Electric and defense firm Kongsberg Gruppen experiencing significant drops. However, technology stocks showed promise, supported by increased capital spending plans from major U.S. tech companies. Other market movements included gains for ING and Airbus, countered by losses from Novo Nordisk and Puma.
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