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European stocks open lower on Fed Dec rate hike talk; Oil slides
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European stocks open lower on Fed Dec rate hike talk; Oil slides
Oct 13, 2016 3:48 AM

European stocks opened lower after minutes from the US Federal Reserve's September meeting raised expectations of a December interest rate hike.

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NSE

The pan-European STOXX 600 was down 0.79 percent.,

Despite not hiking rates in September, Fed minutes on Wednesday showed that three members of the Federal Open Market Committee dissented and called for a rate hike.

Those in favor of hiking rates worried that waiting too long would push the country into recession.

The market is largely anticipating the Fed to raise interest rates later this year, with fed funds futures pricing in a more than 65 percent probability for a hike in December, but just 20 percent for November, according to RBS.

Investor sentiment was also dampened by a fall in oil price after OPEC reported that its oil production rose in September to its highest level in eight years, despite the oil cartel potentially planning to cut output.

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