Stocks ended slightly lower before the Fed’s policy announcement, scheduled the next day, and after the Organization for Economic Cooperation and Development made a dire forecast for global growth by 2020.
Josh Mahoney of IG commented the market sentiment as follows: “European markets are back on their feet despite previous gains. Traders fear that the recent recovery in stocks could force Powell to take their feet from gas.”
“Meanwhile, OECD forecasts show how dangerous the second wave of recovery is.”
In late trading, the Stoxx 600 benchmark fell 0.38% to 368.15, a 0.70% decrease for the German Dax to 12,306.16, while MTST FTSE fell 0.86% to 19 758.01.
Especially after a much stronger-than-expected reading for US nonprofits in May, some investors worried about the ability of the Federal Reserve to reduce the easing bias and the potential impact on market sentiment, especially in government markets. Binding.
Investors are also pleased with the OECD’s recent forecast that global GDP will drop 6% this year, which is even worse than the World Bank’s forecast of 5.2% the previous day.
Wealthy economists also warned that a second pandemic wave could slow growth by 7.6%, which was even a factor in both scenarios.
The Stoxx 600 reduction loss is an attractive travel and vacation name of 2.25%.
This is despite news that Berlin will abolish border controls in all neighboring countries by mid-June and on flights from Spain until June 21.
At the individual level, Inditex has recovered from initial sales triggered by news of the loss of the first three months of a Spanish retailer since it was founded as a public company two decades ago.
Credit Suisse shares also suffered a setback, even after their CFO told the Goldman Sachs conference that investment banks continue to see “significant” increases in the capital market because companies use investors to fund, be it refinance, fresh capital or spend debt.
Meanwhile, difficult economic data continues to be poorly read. INSEE reports that French industrial production fell 20.1% per month in April, with capital goods production down 32.7% and transportation equipment down 47.5%