Market Reaction to Central Bank Decisions

European stock indexes experienced significant losses on Thursday as investors digested recent decisions by the Bank of England (BoE) and the United States Federal Reserve (Fed). The BoE held its interest rates steady, while the Fed reduced its key interest rates by 25 basis points. Notably, the Fed's latest dot plot suggests fewer interest rate cuts in 2025 compared to earlier projections.

In the European markets, the DAX fell by 1.35% or 272 points, and the Euro Stoxx 50 dropped by 0.76%, with Infineon Tech leading the decline at 5.39%. The FTSE 100 dipped by 1.14%, impacted by a 3.76% slide in Pershing Square Holdings LTD. The CAC 40 decreased by 1.22%, driven by a 6.20% drop in STMicroelectronics.

Currency markets saw the euro gain 0.17% against the dollar, trading at $1.03834, while the pound sterling weakened by 0.13% to $1.25601 against the US currency.