Britain’s FTSE lost 0.8 per cent to 6,387.92 and France’s CAC40 edged 0.1 per cent lower to 4,884.79. Germany’s DAX was up 0.1 per cent at 10,843.87.
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Asian stocks slipped on Wednesday, taking cues from an overnight decline on Wall Street and capped by caution ahead of a policy statement from the US Federal Reserve due later in the day. Fed Chair Janet Yellen has previously said she wants to start raising rates this year.
The greenback has suffered a heavy sell-off in October against emerging units as a string of recent soft USA data and ongoing weakness in the global economy – particularly China – fanned expectations the Fed would delay a rate hike until the new year.
JAPAN DATA: Stronger than expected Japanese manufacturing data failed to boost sentiment, since it increases the likelihood the Bank of Japan will hold off on further monetary easing. The Fed’s hawkish tone caught a few investors off-guard. The Nasdaq composite declined 4.56 points, or 0.1 percent, to 5,030.15.
Japan’s benchmark index, Nikkei 225 fell 17.17 points or 0.09 percent to trade at 18,885.85. Shares in Southeast Asia were lower.
The euro extended its losses, slipping about 0.1% to $1.0919 after skidding to a two and a half month low of $1.0826 overnight. Revenue rose 1% to $831 million, falling short of the $836 million projected. The dollar climbed against other currencies on Wednesday as traders anticipated that higher rates were on the way. Economists are divided on whether the Bank of Japan will add to stimulus on Friday.
Energy stocks fell more than the rest of the market Tuesday as the price of crude oil dropped to its lowest level since August.
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At 9 a.m., the dollar fetched 120.89-90 yen compared with 121.03-13 yen in New York and 120.44-45 yen in Tokyo at 5 p.m. Wednesday. The contract fell 78 cents to close at $43.20 in New York on Thursday.
