Stocks Wobble After Fed Signals Pause in Further Rate Cuts

By Caitlin Ostroff 

Global stocks were mixed and the dollar weakened Thursday after the Federal Reserve signaled a pause in further interest-rate easing following its third cut this year.

U.S. stock-index futures were largely flat, following a modest climb in the S&P 500 index Wednesday. The WSJ Dollar Index, which tracks the greenback against a basket of 16 currencies, fell 0.2% following the Fed's policy statement, which signaled a higher hurdle for rate reductions after the latest move.

The U.K.'s FTSE 100 gauge and the pan-European Stoxx Europe 600 index wobbled between gains and losses as investors awaited preliminary eurozone figures for gross domestic product, consumer inflation and unemployment.

Shares in Peugeot maker PSA Group were among the worst performers in Europe, dropping 8.8% following the auto maker's agreement to merge with Fiat Chrysler Automobiles in a deal that will create one of the world's largest auto makers by volume.

Fiat shares climbed 9.7% in Milan, while shares of rival Renault slumped 2.7%.

Royal Dutch Shell shares trimmed 2.8% after the oil giant expressed uncertainty over the pace of it completing its $25 billion share buyback, raising doubt over whether the program would be finished by the end of 2020.

In Asia, the Shanghai Composite edged down 0.4% after data showed Chinese manufacturing activity fell to an eight-month low in October, in yet another signal that the world's second-largest economy is under pressure.

Write to Caitlin Ostroff at [e-mail]

(END) Dow Jones Newswires

October 31, 2019 05:53 ET (09:53 GMT)

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