European stocks slumped Thursday in early trade, losing ground for a fourth session as traders looked for a new catalyst after the breathtaking rally from the depths of the coronavirus crisis.
Up 32% from its March lows, the Stoxx Europe 600 SXXP,
Decliners included airline Deutsche Lufthansa LHA,
The German DAX DAX,
Futures on the Dow Jones Industrial Average YM00,
The Federal Reserve didn’t make too many surprise moves in its decision announced after markets had closed in Asia and Europe. The Fed committed to buy Treasurys and mortgage-backed securities at the current pace, and Chairman Jerome Powell said the central bank wasn’t “thinking about thinking about” raising interest rates.
“Yes, investors appear to have continued locking profits after the recent steep surge in equities, but we don’t expect this to last for long. Eventually, the continued easing of the lockdown measures, combined with more data suggesting that the worse with regards to the coronavirus is behind us, may allow investors to increase their risk exposures again,” said Charalambos Pissouros, senior market analyst at JFD Group.
Just Eat Takeaway JET,
Unilever’s Dutch-listed shares UNA,