The European Stock Market Opened Lower Following Wall Street

European shares retreated from record highs on Thursday. It followed the overnight decreases on Wall Street because of the Federal Reserve’s indications about tapering its massive stimulus earlier than expected. 

The pan-European Stoxx 600 index declined by 0.4%. Meanwhile, the UK’s FTSE 100 yielded 0.66%. 

Michael Hewson from CMC Markets stated that the market reaction was a helpful reminder that the central banks still have to look a lot further despite being relaxed. Also, if the economic condition continues improving, central banks will have to change their monetary policy. 

The analyst also noted that Fed’s preparation might be unsettling for the markets; however, it is also necessary. 

London Shares Sank in Early Trading

After the Fed’s comments, London shares dropped at the beginning of the trading day on Thursday. 

FTSE 100 decreased by 0.39% to 7,156.95. FTSE 250 yielded 0.15% to 22,583.96. Meanwhile, techMARK lost 0.18% to 4,483.75.

Trainline shares surged after reporting a 324% increase in the first-quarter sales after easing the coronavirus-induced lockdowns. 

The financial sector profited well, and personal banking companies such as NatWest, HSBC, Barclays, and Lloyds posted increases. 

Whitebread, a multinational British hotel and restaurant company, Premier Inn owner, also rallied. The company led the gains by surging 4.07% to 3,424.00. Even though the British government extended the lockdowns by a month, the company forecasted strong demand in coastal destinations in summer. 

However, reports implied that fully vaccinated citizens could be exempt from quarantine. It prompted travel and leisure stocks to grow. Among the day’s winners were British Airways, IAG, EasyJet, Wizz, Tui, Carnival, SSP, Rolls-Royce, InterContinental Hotels, and WH Smith. 

As for the losses, the mining sector registered the most significant decreases because metal prices dipped. There were Glencore, BHP, Anglo American, and Antofagasta among the companies with reductions.