Stocks in the European Market was seen in red after the Federal Reserve (Fed) hinted that it may begin to scale back the bond-buying program by the end of the year as the US economy improves .
The European Euro Stoxx 50 dropped 0.33% to 2,781.50 at market open, while the German DAX declined 0.48% to 8,259.66 at the same time. The French CAC 40 edged down 0.38% lower at 4,017.18, while the UK FTSE 100 lost 0.28% to 6,450.30.
Fed officials from Dallas, Chicago and Atlanta are hinting the reduction of the QE program could begin as early as September or October this year.
Chicago’s Fed President Charles Evans said that the quantitative easing (QE) tapering was likely to begin by the end of the year, but refused to give an exact date on the reduction.
While the Fed President for Atlanta Denis Lockhart suggesting the QE program should begin it’s tapering as he suggested the payroll growth of 180,000-200,000 range is adequate to start the move.
Dallas Fed President Richard Fisher suggested the FOMC could begin to proceed with the QE tapering this fall.
“With the unemployment rate having come down to 7.4%, I would say that the Committee is now closer to execution mode, pondering the right time to begin reducing its purchases, assuming there is no intervening reversal in economic momentum in coming months,” Fisher said .
Industrial production in Germany is expected to rise by 0.3% in the month of June on a monthly basis, while on a yearly basis it is expected to drop 0.3%.
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