European stocks opened cautiously Thursday morning after the U.S. Federal Reserve cut interest rates for the third time this year, while corporate earnings season continues to impact markets.
The pan-European Stoxx 600 hovered around the flatline at 399.03 in early deals, with autos falling 0.8% on the back of a plunge for PSA Peugeot Citroen after its announcement of a merger with Fiat Chrysler. Utilities stocks made a strong start, adding 0.7%.
The Federal Open Market Committee (FOMC) on Wednesday announced a third consecutive 25 basis point cut to interest rates in order to help sustain U.S. growth, but removed the key phrase from its statement pledging to “act as appropriate,” suggesting the central bank will halt monetary policy easing barring a significant downturn for the U.S. economy.
Source : CNBC