European stocks are poised to open lower on Thursday morning, as investors reacted to the U.S. Federal Reserve‘s decision to raise interest rates.
As widely expected, the Fed hiked interest rates for a third time this year on Wednesday. The U.S. central bank delivered its much-anticipated rate decision with a word of caution over low inflation — which is expected to remain below the Fed’s target for another year. Policymakers were therefore seen to have little reason to accelerate the pace of rate increases, although the Fed signaled it would implement three further rate increases in 2018.
Meanwhile, the European Central Bank (ECB) and the Bank of England (BOE) were both poised to announce monetary policy decisions later on Thursday. Investors will likely monitor ECB President Mario Draghi’s comments on the euro zone economy and, in turn, BOE Governor Mark Carney’s views on Brexit for any potential incentives.
In other news, British lawmakers voted in favor of an amendment to the European Union Withdrawal Bill on Wednesday, giving parliament more say over any final exit deal. The vote marked a defeat for Prime Minister Theresa May shortly before she is due to arrive in Brussels for a two-day summit on Thursday.
Europe markets set to open lower after Fed meeting; investors await ECB decision