The decision by the US Federal Reserve to raise interest rates for the third time this year on Wednesday saw US equities falter, as Fed chairman, Jay Powell, sought to quell fears of the trade war between Washington and Beijing negatively impacting aggregate economic performance.
US equities cancelled out indistinct gains made in the morning session, with both the S&P 500 and the Dow Jones Industrial Average closing down on the day.
The picture was mixed in Europe, as losses in the technology, retail and food & beverages sectors offset gains in the utilities, telecoms and industrials sector.
Oil prices receded from Tuesday’s fresh four-year highs while gold was also down on the day.
The euro dropped 27 points against the dollar to $1.174 on Wednesday following comments by Giovanni Tria, the Italian finance minister, who said the country would look to include measures for a “citizens’ income”. Mr Tria’s remarks sought to appease investors and prevent a clash over spending with Italy’s Five Star Movement, which is currently in coalition with The League. Sterling also weakened slightly, down 16 points to $1.3167.
The S&P 500 fell 9 points in New York on Wednesday, closing the day at 2,905.97. The Dow Jones also dipped 106 points to 2,6385.28. In Frankfurt, the exporter-heavy DAX shed 75 points to 12,310.29. In London, the FTSE 100 gained 4 basis points to rise to 7,511.49.