Forex Headlines: European Stocks Fall
The US Federal Reserve seemed to have opened a can of worms as European Stocks are now falling, their efforts to avoid a recession may well as said before be counter-productive.
The United Kingdom FTSE 100 has seen an index fall of 4.5% after worries that the cental banks may not follow suit with the US reduction in interest rates.
It does indeed look doubtful that the Bank of England will speed up any plans to cut interest rates because of the US decision . We need to be prepared for the index to fluctuate in the next few weeks. Each day a recession both in the UK and US is looking more and more likely.
Business earnings are likely to be effected and stock prices have already fallen across the major financial markets already. Larger corporations such as oil companies and those involved in technology have been worst effected.
Expect plenty of profit warnings over the next few months too. Investors are anxious at recent market events even in areas like Asia.