European Stocks Tumble Amidst Fed's Forecast and Global Economic Jitters

On Thursday, European stocks experienced a sharp decline, fueled by the U.S. Federal Reserve's projection of fewer interest rate cuts in the future. The STOXX 600 index fell 1.5%, impacting several sectors. Global market reactions were notable as economic uncertainties continued to drive investor caution.

European stocks suffered a significant downturn on Thursday, marking the biggest single-day drop for the STOXX benchmark since early November. This decline was spurred by investor apprehension following the U.S. Federal Reserve's indication of a slower trajectory for rate cuts moving forward.

The STOXX 600 index concluded the day 1.5% lower, reaching a three-week low with all major sub-sectors showing declines. The global equities market encountered volatility after the Fed's rate cut announcement on Wednesday. Fed Chair Jerome Powell emphasized that further reductions would depend on achieving lower inflation.

Wall Street saw a minor recovery after a notable decline, with tech and real-estate sectors hit particularly hard. Meanwhile, central banks in England, Sweden, and Norway made varied monetary policy decisions, reflecting mixed economic strategies across Europe. A notable perhaps was SoftwareOne Holding's acquisition of Crayon Group, causing shares of both firms to move.

(With inputs from agencies.)