As a result of yesterday's trading, European stock indices fell, investors evaluated the results of meetings of the world's leading central banks.
The composite index of the largest enterprises in the region Stoxx Europe 600 dropped by 0.51% and amounted to 371.23 points.
The British FTSE 100 indicator fell 0.47%, the German DAX – 0.36%, the French CAC 40 – 0.69%. Italy's FTSE MIB and Spain's IBEX 35 lost 1.12% and 0.35%, respectively.
The leadership of the Federal Reserve System (FRS), following the meeting ended the day before, made it clear that it does not intend to change interest rates from current levels, at least until the end of 2023. At the same time, there were no announcements of new measures to support the US economy, which disappointed investors, MarketWatch reports.
Federal Reserve Chairman Jerome Powell said during a press conference that the current economic crisis caused by the COVID-19 pandemic is “the worst in our century.” In this regard, according to him, the American Central Bank is ready to maintain a “full set” of measures to support the economy, including continuing to buy out US Treasuries and mortgage-backed securities at the current pace ($ 120 billion a month) until the US economy “advances. in his recovery “.
The Bank of Japan at its regular meeting, which ended on Thursday, decided to preserve the ultra-soft parameters of monetary policy, as predicted by most experts. At the same time, the Central Bank gave a slightly more positive assessment of the state of the country's economy than at the end of the July meeting, and noted that an immediate expansion of incentives is not required to combat the coronavirus infection COVID-19.
The Bank of England at the end of the September meeting kept the base interest rate at 0.1%, according to a press release from the Central Bank.
Meanwhile, the regulator again warned that “the outlook for the British economy remains atypically uncertain” due to both the impact of the coronavirus pandemic and the prospect that the UK will not be able to conclude a trade agreement with the European Union.
The British Central Bank also decided to leave the volume of the government bond repurchase program at 745 billion pounds, the Monetary Policy Committee (MPC) said in a statement.
Shares of European manufacturers fell after the release of data on the fall in car sales in the European Union in January-August by 32% against the same period last year.
According to the European Association of Automobile Manufacturers (ACEA), the number of registered new cars in the EU (excluding Malta, for which data are not available) amounted to 6 million 123,852 thousand this year, compared with 9 million 2,172 thousand a year earlier.
Among the largest auto markets in the region, Spain (-40.6%) showed the strongest decline, followed by Italy (-38.9%), France (-32%) and Germany (-28.8%).
Renault SA fell 0.2%, Volkswagen AG lost 0.9%.
Next Plc (LON: NXT) gained 4.2%. The British clothing chain raised its profit forecast for the current fiscal year, which ends in January, for the second time since the beginning of the year. Pre-tax profit for the year is expected to be around £ 300 million instead of the previously predicted £ 195 million.
Rolls-Royce (LON: RR) shares declined 1.3%. The British engineering holding is still evaluating a range of financing options to bolster its financial position, with no final decision yet made on any of the options.
Grenke AG jumped 33.6% after falling 40% a day earlier, becoming the top gainer among the Stoxx Europe 600 components. The German leasing company said it firmly denies allegations of financial fraud leveled by Viceroy Research.