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European Stocks Seen Up On Fed's Dovish Stance


European stocks may open higher on Thursday after the Fed turned more dovish than expected, pushing the treasury yields down to year lows.

The U.S. Federal Reserve left interest rates unchanged and indicated it no longer expects to raise rates this year, keeping in view a slowdown in growth from the solid rate seen in the fourth quarter of 2018.

Asian rose edged higher even as global growth concerns and uncertainty over U.S.-China trade talks limited gains.

U.S. President Donald Trump warned on Wednesday that he would likely keep tariffs on Chinese goods for a "substantial period" until he is sure Beijing is complying with any trade agreement.

The U.S. dollar recovered some ground after falling in the previous session as the Fed abandoned projections for any interest rate hikes this year and unveiled a long-term plan to end to its balance-sheet contraction.

Gold held near a three-week high and China's yuan hit its strongest since July, while oil prices eased from four-month high on growth worries.

The Bank of England is expected to hold interest rates at 0.75 percent when it reviews its monetary policy today.

On the Brexit front, British Prime Minister Theresa May on Wednesday wrote to the European Union seeking extension of the Brexit negotiation until June 30.

U.S. stocks ended a volatile session on a mixed note overnight. While the tech-heavy Nasdaq Composite inched up 0.1 percent to reach a fresh five-month closing high, the Dow dropped 0.6 percent and the S&P 500 eased 0.3 percent.

European markets slipped from near month highs on Wednesday as investors booked some profits after a five-day rally amid concerns surrounding China-U.S. trade talks and the Brexit saga.

The pan European Stoxx 600 shed 0.9 percent. The German DAX tumbled 1.6 percent, France's CAC 40 index slid 0.8 percent and the U.K.'s FTSE 100 declined half a percent.

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