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Europe stocks slide as Fed rate move eyed; DAX down 0.3%

Published 06/23/2010, 08:54 AM
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Investing.com – European stocks slid for a second day on Tuesday, in the wake of weak U.S. housing data and as investors awaited a key interest rate decision by the Federal Reserve.

During European afternoon trade, Germany's DAX was down 0.3%; the EURO STOXX 50 shed 0.62%; and France’s CAC 40 was down 0.72%.

Britain's FTSE 100 slipped 0.53%, meanwhile, after minutes of the Bank of England's most recent policy-setting meeting showed that a Monetary Policy Committee member voted for an interest rate hike.

The minutes revealed that Andrew Sentance, the MPC member, wanted to raise the benchmark rate from its current 0.5% to 0.75%; the other members voted to hold the rate steady.

Miners were among the worst performers, with Xstrata dropping 2.17% and Rio Tinto shedding 1.87% in London.

Meanwhile, the Fed was expected to leave its benchmark interest rate at a record low and reiterate a pledge to leave it there for some time, in light of the fragile U.S. economic recovery and ongoing threats posed by Europe's debt crisis, high unemployment and a frail housing market.

The outlook for U.S. equity markets was rosy: Dow Jones Industrial Average futures indicated a rise of 0.35%, S&P 500 futures pointed to an increase of 0.35% and Nasdaq 100 futures indicated a rise of 0.29%.

Also Wednesday, the Census Bureau was due to release a report on new U.S. home sales, a key signal of overall economic health.

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