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European markets drop on Fed meeting

by Carl Steward
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europian markets, ukraine,European markets drop on Fed meeting

European stocks appeared lower on Monday as investors prepared themselves for the next meeting of the U.S. Fed this coming week. 

At the same time, investors are analyzing if tensions between Ukraine and Russia are growing.

In the meantime, we can analyze the pan-European Stoxx 600 that dropped 1.5%, with travel and leisure stocks falling 3.3%. All sectors fell except telecoms, which gained 0.7%.

Unilever grew 5.7% in early deals concerning individual share price movement. After these reports, activist investor Nelson Peltz accumulated a stake in the British consumer goods company.

Swiss online pharmacy Zur Rose Group fell 7.9% after Berenberg and UBS cut their target price.

European markets followed their Asia-Pacific peers lower on Monday. Moreover, investors reacted to tensions between Russia and Ukraine and the U.S. Fed’s monetary policy meeting this week.

Besides, the Federal Open Market Committee will meet on Tuesday and Wednesday. They will determine the next steps for U.S. monetary policy.

Rising inflation is a significant concern for the U.S. central bank. Also, investors will listen carefully to hear how worried the Fed is. On Wednesday afternoon, Chairman Jerome Powell will talk to the media after the FOMC releases its statement.

European market might suffer more

In the meantime, it is clear that the military conflict between Ukraine and Russia is probable. Analysts believe that these events can also affect markets.

The U.S. State Department advised U.S. citizens on Sunday to leave Ukraine immediately. The reason for this report was Russia’s extraordinary military buildup on the border.

On Sunday evening, a senior State Department official explained the decision on a call with reporters. In fact, he said that they recommend that U.S. citizens should consider departing Ukraine. He also said they could use commercial or other available transportation options.

The U.K. blamed the Kremlin for installing a pro-Russian leader in Ukraine on Saturday. Russia denied preparing to invade its neighbor.

On Monday, Data showed that the eurozone economic recovery would get slower in January. It results from the omicron variant that led to renewed restrictive measures that affected activity.

The post European markets drop on Fed meeting appeared first on forexinsider24.com.

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