European stocks retreated from 1-month peak after Fed statement

European stocks retreated from 1-month peak after Fed statement

European stocks retreated from 1-month peak after Fed statement

(Reuters) – European stocks retreated from a one-month high reached at the close on Thursday after the US Federal Reserve pledged to keep interest rates low for a long time.

The pan-European STOXX 600 is down 1% to 10.24 Moscow time and may interrupt a four-day rally.

The US Federal Reserve System kept its key interest rate in the range of 0.00-0.25% per annum and promised to keep it at this level until inflation reaches a trajectory where it will “moderately exceed” the 2% target by for “some time”.

The American technical sector was the leader of the decline the day before, and its European “colleague” followed him in the morning trading, sagging by 1.6%. Banks, automakers and the mining sector posted the most significant declines in Europe, shedding from 1.5% to 2%.

Volkswagen, Renault and PSA Group shares lost 1.6% to 2.4% in value after industry data showed that new car sales fell 17.6% in August.

Unibail-Rodamco-Westfield, a real estate company, fell 8.05% after announcing a € 9bn plan that includes a capital increase to maintain its balance sheet.

(Shruti Shankar in Bangalore, translated by Elizaveta Zhuravleva. Editor Anna Kozlova)

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