Global stocks fell on Thursday and the dollar weakened following Federal Reserve’s tempered outlook on the world economy.
Wall Street on Wednesday rallied briefly after Federal Reserve officials hinted they would likely only increase interest rates twice this year, down from earlier expectations of four rate increases.
But markets gave up gains on Thursday as investors digested the Federal Reserve’s cautious stance on the U.S. economy and its concerns about global growth.
Stock futures pointed to a weaker open on Thursday, shedding 0.3% but changes in stock futures aren’t necessarily reflective of market dynamics after the opening bell.
The Stoxx Europe 600 fell 1.1% midway through the day’s session, dragged down by declines in the banking sector.
In currencies, the dollar continued yesterday’s sharp fall as the prospect of lower interest rates and less frequent hikes made the American currency less appealing to investors who are looking for quick yields.
In commodities, the weaker greenback help made copper and oil more attractive to investors, lifting their prices. Brent crude gained 0.9% to trade higher at $40.69 a barrel, while copper futures in London added 1.4% to trade at $5,064 a ton.
Gold also gained on Thurday, tacking on around 3.3% to trade at $1,270 an ounce.