BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks look set to open on a tepid note Thursday after the U.S. Federal Reserve cut rates by another 25 basis points, as widely expected, but cast some doubt on the need for future stimulus.
U.S. policymakers were divided, with three members voting against the rate cut as they believe the economy doesn't need more support.
Asian markets traded in a tight range as the Fed delivered a 'hawkish' easing, giving little insight on its next move.
Fed Chair Jerome Powell described the U.S. economic outlook as 'favorable,' and shot down media speculation about the yield curve signaling a recession on the horizon.
'We are adjusting monetary policy in a more accommodated direction to try to support what is in fact a favorable outlook,' he said.
Gold held little changed after falling up to 1 percent in the previous session amid signs of ongoing divisions within the Fed over whether a reduction in borrowing costs is needed.
The U.S. dollar slipped against the Japanese yen as the Bank of Japan left its monetary stimulus unchanged and called for a re-examination of prices and the economy at its October meeting.
The Bank of England is expected to keep rates unchanged when it reviews its monetary policy later today. The Swiss National Bank is expected to hold its new policy rate at -0.75 percent.
Oil traded flat to slightly higher after a two percent drop on Wednesday as data showed an increase in U.S. crude stockpiles last week.
Overnight, U.S. stocks ended narrowly mixed, reflecting disappointment that the Fed had declined to indicate that more rate cuts are likely.
'Jay Powell and the Federal Reserve Fail Again. No 'guts,' no sense, no vision! A terrible communicator!' Trump tweeted shortly after the announcement.
European markets ended Wednesday's session on a flat note as investors kept a close watch on geopolitical developments, U.S.-China talks and the impending Fed decision announced later in the day.
The pan European Stoxx 600 ended flat with a positive bias. The German DAX and France's CAC 40 index both inched up 0.1 percent while the U.K.'s FTSE 100 slipped 0.1 percent.
Copyright RTT News/dpa-AFX