European Stocks End Positive Spell, Dipping After Fed Update

(Bloomberg) -- European stocks fell on Thursday, ending their longest winning run in a month, as investors turned cautious after Federal Reserve Chair Jerome Powell highlighted uncertainty about the path of the U.S. economic recovery.

The Stoxx Europe 600 Index ended 0.5% lower, after the Fed vowed to keep interest rates near zero through 2023, while announcing no new measures. All but two of the 19 industry groups lost ground, with banks and miners underperforming. Unibail-Rodamco-Westfield tumbled 10% after announcing plans for a $4 billion equity raise. Meanwhile, Grenke AG topped the gauge with a 34% rally.

Even with today’s decline, the Stoxx 600 remained above the 200-day moving average it pierced earlier this week.

The risk-off move in stocks and a higher dollar comes as the market shows “its frustration at the Fed’s reluctance to offer any more stimulus,” wrote Fiona Cincotta, a market analyst at City Index.

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