European Stocks Tumble on Fed's Downbeat Assessment of Global Economy

Frankfurt (Sept 18)  After a mixed start, gloom descend on European markets Friday morning as investors, spooked by the Federal Reserve's downbeat assessment of the global economy, took a glass-half-empty view of its decision to stand pat on rates.

Perpetuating months of uncertainty the Federal Open Market Committee cited "global economic and financial developments" as its reason for delaying the first rate rise in almost a decade. Fed Chief Janet Yellen warned that a surprisingly "abrupt" slowdown in China may hurt U.S. growth.

"As these conditions could persist, it raises reasonable questions about whether they will be able to move this year," noted UBS economists, who have now cut their rate expectations from 150 basis-points of rises in the current cycle to 100 basis points, in increments of 25 basis points at every other Fed meeting next year.

In Frankfurt by late morning, the DAX had tumbled 2.22% to 10,002.02. In Paris, the CAC 40 sunk 2.08% to 4,558.42.

In London, the FTSE 100 was down 0.75% at 6,140.67.

In London, Warburg Pincus LLC-backed Poundland Group jumped 2% on confirmation that the Competition and Markets Authority, after an extended probe, has opted to waive through its small but strategically important purchase of 99p Stores Ltd. without making it sell shops.

UDG Healthcare was up well over 6% after agreeing to sell assets to San Francisco's McKesson (MCK - Get Report) for about €408 million ($467 million)

In Paris, payments-processing company Ingenico Group (INGIY)  rose more than 10% initially on news that reported bid target Worldpay has opted to pursue a London IPO rather than a £6.6 billion ($10.3 billion) bid from its French rival. By late morning Ingenico remained up more than 7%.

In Frankfurt, e-commerce and Internet incubator Rocket Internet was down well over 5%. The company on Thursday announced that a new €75 million funding round at portfolio company Hello Fresh GmbH had lifted the food-delivery business's valuation to a heady €2.6 billion from €2 billion as of March.

Axel Springer, the publisher behind Germany's best-selling Bild tabloid, edged higher after announcing the sale of its Russian activities late on Thursday.

Phoenix Solar fell more than 9% after it said it may make a small loss this year after unexpectedly losing a contract in Asia.

In Tokyo, the Nikkei 225 fell 0.96% to 18,070.21 and the declined 1.98% to Topix 1,462.38.

The Shanghai Composite rose 0.38% to 3,097.92 and in Hong Kong the Hang Seng gained 0.30% to 21,920.83.

Source: TheStreet