The Fed raised the key rate by 25 basis points to a range between 5% and 5.25% as expected, but backtracked on its statement that it “anticipates” the need for further increases.
However, Fed Chairman Jerome Powell said it was too early to say the rate hike cycle was over.
stock movements
Europe’s Stoxx 600 index fell 0.8%, led by auto stocks, which fell 2.3%.
The oil and gas index was the lone winner, up 1.3%.
All eyes are now on the European Central Bank’s interest rate decision, due to be announced at 12:15 GMT, as the central bank is expected to raise interest rates by another quarter of a percentage point, but it is not excluded to announce a more significant increase, in the midst of persistent inflation.
Shares of Shell plc jumped 2.4% as earnings beat expectations, despite a slight drop in first-quarter earnings from the previous quarter due to slowing energy prices.
The STOXX 600 index was hit by a 4.8% decline in Denmark’s Novo Nordisk after it said it would cut supply of doses of the drug ‘Wigovy’ for the treatment of obesity in the United States due to of increased demand.
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