European Stocks Plummet Amid Federal Reserve Announcement

European stocks saw their largest drop in five weeks as the Federal Reserve announced plans for a slower pace of interest rate cuts next year. The pan-European STOXX 600 index fell, influenced by declines in major U.S. indexes. Investors reacted by selling off equities and commodities.

European stocks tumbled sharply on Thursday, marking their biggest percentage drop in five weeks, as the Federal Reserve indicated it would slow the pace of interest rate cuts next year. This prompted investors to offload riskier assets like equities and commodities.

The STOXX 600, a key index tracking Europe's largest companies, fell 1.2% by 0809 GMT. U.S. stocks also experienced a significant decline on Wednesday after the Federal Reserve's expected rate cut, coupled with warnings that further cuts depend on progress in taming inflation.

Government bond yields in both the U.S. and Europe surged, and oil and metals prices fell due to a robust dollar. European technology stocks were hit hard, dropping 1.9% after losses in large-cap tech giants on Wall Street. Traders are now focused on the upcoming Bank of England rate decision, with the FTSE 100 also down 1.2% amid a broader market selloff.

(With inputs from agencies.)