Global stocks suffer small hit after dim US Fed outlook

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Global stocks took a small hit on Thursday after the US Federal Reserve wagered an outlook of the state of the U.S. economy, according to a report by Reuters. The report said the impact was not significantly big. European shares were down by 0.2 percent after Asia Pacific shares, excluding Japan, had dropped 0.6%

The Asian market had been more stable after the Bank of Japan decided to continue with its economic stimulus program. The stimulus program showed signs of addressing deflation.

In Europe, the European Central Bank's (ECB) policy of overseeing banks and helped European banks remain solvent. However, banks banking regulators in the European bloc are still waiting for more information on what are the types of debts are included to make banks qualify, according to a repport by Bloomberg.

Some of the analysts said that the action of the U.S. Federal Reserve was not a cause for concern..

"We interpreted the statement as neutral and balanced and think the Fed is essentially in a holding pattern," analysts at the Australia and New Zealand Bank told Reuters.

Tags
U.S. Federal Reserve, World economy, Stocks

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