European stock indices are disappointed with the statements by the fed

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European investors were severely disappointed with the statements of the head of the fed Jerome Powell and will probably continue to be under this negative impression in the short term.
The fed expressed concern about the uncertainty around the trade conflict and growth in the world economy that, in his opinion, continues to influence the forecast for the development of the U.S. economy. The statements of Powell, on the one hand, strengthened the confidence of markets in reducing rates at the next meeting of the regulator, which will be held in late July and left a lot of questions.
The Powell statement has sounded next day after the German chemical giant BASF has warned that a protracted trade war between the US and China will most likely negatively affect revenue, particularly companies in the agricultural and automotive sectors.
Also a negative was received and the forecast concerning prospects of development of the European countries from the European Commission. In particular, it noted that no transaction Brexit remains the main source of domestic risk to the economy of the region. However, it maintained its growth forecast for the UK economy for the current and following years, at 1.3%. Italy’s GDP, according to forecasts of the European Commission in 2019 will grow by 0.1%, making it the slowest growing country of the European Union.
And France alarming was the news that the United States started the investigation in connection with the plans of this European countries to raise taxes on digital companies.
Andrew Voitkiv,
Financial scout,
Forex Club