European stocks slump ahead of US Fed decision

LONDON: European stocks slumped despite rate rises in Turkey and South Africa as concerns over emerging markets persisted ahead of an expected decision by the US Federal Reserve Wednesday to cut stimulus.
London’s benchmark FTSE 100 index fell 1.00 per cent to 6,506.32 points in afternoon deals, Frankfurt’s DAX 30 shed 1.45 per cent to 9,270.82 points and the CAC 40 in Paris dropped 1.25 per cent to 4,133.09 points.
The euro slid against the dollar, as a cut to stimulus would make the dollar a more attractive asset and may push up yields on US treasury bonds.
Meanwhile: US stocks opened sharply lower ahead of the widely watched policy decision by the US Federal Reserve on continuing to trim stimulus.
Five minutes into trading, the Dow Jones Industrial Average slumped 0.87 per cent to 15,789.99 points.
The broad-based S&P 500 fell 0.77 per cent to 1,778.69, while the tech-rich Nasdaq Composite Index declined 0.85 percent to 4,062.93.
Meanwhile the Russian ruble touched fresh lows after the Central Bank meanwhile announced that it had spent more than $1.1 billion (800 million euros) propping up the ruble on Monday as emerging market currencies plunged in value across the world in its biggest intervention in two years.
The Russian unit fell to new record low of 48.10 to the euro and and a five-year low of 35.23 to dollar in afternoon trading.
The Reserve Bank of India also lifted Tuesday its benchmark repo rate, at which it lends to commercial banks, by 25 basis points to 8.0 percent.
The euro firmed to $1.3638 from $1.3667 late Tuesday in New York.
Haven investment gold rose to $1,254.75 an ounce on the London Bullion Market from $1,251.25 Tuesday.