BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening on a mixed note Thursday as investors react to Federal Reserve Chair Jerome Powell's hawkish remarks as well as a batch of mixed big tech earnings.
At the end of a two-day policy meeting, the Fed lowered interest rates by another quarter point, as widely expected, and said it will halt quantitative tightening program amid signs of stress in money markets.
However, Chair Powell cautioned that a further reduction in rates in December is 'not a foregone conclusion,' noting officials had 'strongly differing views about how to proceed' at the final meeting of the year.
Powell also highlighted the high level of uncertainty due to government shutdown delaying key data and said there's a 'growing chorus' that feels the Fed should 'wait a cycle' to continue cutting rates.
Elsewhere, the Bank of Canada signaled an end to its cutting cycle after trimming its key policy rate for the fourth time this year.
Earlier today, the Bank of Japan kept benchmark interest rates steady at 0.5 percent in its first meeting after Sanae Takaichi took power as the country's prime minister.
The central bank repeated its pledge to continue increasing borrowing costs if the economy moves in line with its projections, shifting investor focus to the prospect of a December rate hike.
The European Central Bank is set to keep interest rates unchanged for a third meeting later today, citing low inflation and steady growth.
On the earnings front, Google parent Alphabet beat Wall Street estimates for third-quarter revenue.
Microsoft reported stronger-than-expected quarterly results, but massive AI spending deepened investor fears about the costs of sustaining the boom.
Meta reported a nearly $16 billion one-time charge in the third quarter related to President Trump's 'Big Beautiful Bill.'
Earnings results from companies like Apple and Amazon along with commentary from the Federal Reserve's Michelle Bowman may garner attention later in the day.
Asian markets were mostly lower in cautious trade. After holding crucial talks with Chinese President Xi Jinping in South Korea, U.S. President Donald Trump announced that tariffs on Chinese goods will be reduced to 47 percent from the current 57 percent.
The rare earths issue has been settled, and that's for the world, Trump told reporters aboard Air Force One, adding that the deal was for a year and would be re-negotiated annually.
He also revealed plans to visit China in April to discuss trade cooperation and other key issues between the two nations.
The dollar eased and gold ticked higher to trade above $3,950 per ounce, while oil drifted lower after snapping a three-day losing run in the previous session on data showing a large drop in U.S. stockpiles.
Overnight, U.S. stocks fluctuated before ending mixed as traders assessed the Fed's cautious stance on future rate cuts.
The tech-heavy Nasdaq Composite gained 0.6 percent to reach a new record closing high after President Trump said he would discuss the sale of Nvidia's Blackwell chips in his highly anticipated meeting with Chinese President Xi Jinping. The S&P 500 finished marginally lower and the Dow slid 0.2 percent.
European stocks turned in a mixed performance on Wednesday ahead of the Fed's interest-rate decision.
The pan European Stoxx 600 finished marginally lower after hitting an intraday record high.
While the U.K.'s FTSE 100 rose 0.6 percent, France's CAC 40 eased 0.2 percent and the German DAX dipped 0.6 percent.
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