BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are set to open lower on Thursday after the U.S. Federal Reserve raised key interest rates by 25 basis points and indicated it still expects to hike rates twice in the first half of next year.
Investors were disappointed as the central bank's tone was not as dovish as some traders had hoped.
Asian stocks remain broadly lower, with benchmark indexes in Australia, Hong Kong, South Korea and Japan falling 1-3 percent after the Fed hinted at more rate hikes.
Meanwhile, the Bank of Japan maintained its ultra-loose monetary policy and reaffirmed its view on the economy, citing stagnant inflation and a looming consumption tax hike next year.
The Bank of England is set to hold interest rates unchanged later today amid slowing inflation and peaking Brexit uncertainty.
The dollar steadied as the Senate passed a short-term bill to avert a federal shutdown.
Oil resumed declines to fall around 2 percent in Asian trade after data released by the Energy Information Administration showed a much less than expected drop in U.S. crude stockpiles last week.
In corporate news, metal companies could be in focus today after the United States said it would withdraw sanctions on Russian aluminium producer United Company Rusal.
Overnight, U.S. stocks ended sharply lower after the Federal Reserve raised interest rates by a quarter point and forecast fewer than previously estimated rate hikes next year.
The Dow and the S&P 500 fell around 1.5 percent and the tech-heavy Nasdaq Composite shed 2.2 percent to close at their lowest levels in over a year.
European markets ended Wednesday's session higher after the EU reached a deal with Italy over its budget plan and said it has started implementing contingency plans for a no-deal Brexit.
The pan-European Stoxx Europe 600 index gained 0.3 percent. The German DAX inched up 0.2 percent, France's CAC 40 index rose half a percent and the U.K.'s FTSE 100 added 1 percent.
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