Federal Reserve decision triggered stock decline in Europe.
European stock markets recorded losses due to the negative situation in Asia and the USA following the U.S. Federal Reserve's announcement to reduce its asset purchase program.
The Stoxx 600 index fell by 1.2%, while Asian stock indices dropped by the same amount. U.S. stock indices recovered after the largest drop in the S&P 500 since 2001 ahead of the Federal Reserve meeting.
Accompanied by comments from Bank of Japan Governor Kazuo Ueda questioning the rise in interest rates, the Japanese yen further depreciated. The yen's exchange rate to the dollar reached 156 yen, which is a record low.
Markets anticipate a decrease in interest rates in 2025. A block deal in the options market related to loan rates may benefit from the beginning of the next rate hike cycle next year.
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