European stocks lower as Fed start two-day meeting . . . . . . . . European stocks retreated from a five-year high and traded lower early Tuesday as the Fed starts today their two day policy meeting; investors expect the Fed to start to withdraw stimulus. Investors are cautious as the Federal Open Market Committee’s policy decision Wednesday is expected to see the Federal Reserve reduce monetary stimulus and slow the pace of monthly asset purchases to $75 billion per month from the current $85 billion. The upside reaction to Summers withdrawing the nomination for the top fed job has faded as the attention turns to the FOMC. European stocks enjoyed the global rally yesterday on the news amid eased Syria tension as well pushing DAX to a record and extending gains to the highest since June 2008. - STOXX 600 is trading lower by 0.46% at 311.99 - STOXX 50 is trading lower by 0.51% at 2879.67 The market is expecting the fed to slow monthly bond purchases by $10 billion, which is still less than the initially expected earlier in July as the economy continues to offer mixed signals, and especially the labor market. European equities have enjoyed strong gains in the recent period, especially as the outlook for growth has improved alongside supportive monetary policies from the two main banks, the BoE and ECB. - DAX is trading lower by 0.30% at 8585.95 - CAC 40 is trading lower by 0.46% at 6597.55 - IBEX 35 is trading is trading lower by 0.90% at 8918.70 - FTSE MIB is trading lower by 0.66% at 17615.88 In other news, bailout UK lender Lloyds Banking Group Plc is capturing headlines this morning after the government said in a statement today they sold 4.28 billion shares -6.0% of the issued stock- to money managers. The stake in Lloyds sold at 3.2 billion-pounds the shares were priced at 75 pence. The news pressured Lloyds shares lower weighing on FTSE 100. - Lloyds Baking Group Plc (LLOY LN) is trading lower by 2.28% at 75.61GBp - FTSE 100 is trading lower by 0.37% at 6598.12 #egyptyard
Posted on: Tue, 17 Sep 2013 08:38:06 +0000