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US Stock Exchange in New York
Photo: ANDREW KELLY / REUTERS
Fear of a tighter US monetary policy is weighing on the stock exchanges in Europe.
Dax and EuroStoxx50 each fell by more than two percent in the morning.
The leading German index was at times its lowest level in more than two weeks.
The minutes of the Fed meeting show that the taps could be turned off faster than expected. "The money locks are still wide open, but if the labor market continues to recover, the bond purchases to support the economy should be reduced in the near future," said Jochen Stanzl, chief market analyst at the trading house CMC Markets. That puts the success-used stock markets to the test.
Analysts think it is conceivable that the Fed could announce its plans for reduced bond purchases as early as its next interest rate meeting on September 21st and 22nd.
"If the US Federal Reserve starts to turn off the money tap slowly but precisely, one of the mainsprings for the rising prices of the past 18 months on the stock exchanges loses power, while at the same time it is not clear with which dynamism the economy can continue to grow," said Stanzl.
Meanwhile, concerns about oil demand pushed oil prices to a three-month low.
The North Sea Brent is 3.1 percent cheaper to around 66 dollars per barrel (159 liters), while the price of US WTI light oil fell by 3.7 percent to around 63 dollars.
Dealers named the increasing number of corona cases, the surprising increase in US gasoline stocks and the stronger dollar as negative factors.
ssu / Reuters