European markets tumble after Fed outlook; Stoxx 600 down 2.9%
European stocks fell sharply Thursday as investors digested the latest comments from the U.S. Federal Reserve and fears of a second wave of coronavirus infections.
Investor reaction to the Fed’s latest economic forecast was in the spotlight Thursday. The U.S. central bank kept interest rates unchanged on Wednesday and indicated it does not expect to raise them through 2022. The Fed also said it expects the U.S. economy to contract by 6.5% in 2020 before expanding by 5% in 2021.
Lufthansa stock fell 7.7% after the German airline announced that up to 26,000 employees could be at risk of job losses. Cruise operator Carnival plunged 11.3% to sink to the bottom of the Stoxx 600 while cinema chain Cineworld dropped 11%.
Unilever was one of only a handful of European stocks in positive territory, gaining 1.8% after the company said it would merge its dual-headed structure to allow for greater M&A flexibility. Just Eat Takeaway shares climbed 3.7% to lead the Europe
