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- Painful wait in Saudi for family of detained Syrian chess champion
- Maiden Atal ODI century helps Afghanistan crush Zimbabwe
- France footballer Paul Pogba's brother sentenced to year in prison in extortion case
- Champions Trophy tug of war shows India's 'stranglehold' on cricket
- Co-owner Ratcliffe increases Manchester United stake
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- Israel accused of 'acts of genocide', 'ethnic cleansing' in Gaza
- Rashford leaving Man Utd could do 'world of good' - Keane
- Denmark expects Chinese ship probed over cut cables to depart
- BoE holds interest rate after inflation rise
- Portugal, Spain, France bust contaminated seafood ring
- Liverpool boss Slot urges patience with Chiesa return
- Monaco's Singo apologises after injuring Donnarumma
- Britain's Draper out of Davis Cup tennis tie against Japan
- White House unveils new climate goals weeks before Trump's return
- Scent of success? Samaranch bids to emulate father in IOC presidency race
- US-based Friedkin Group complete Everton takeover
- Stock markets decline as Fed eyes fewer rate cuts
- India to play Champions Trophy on neutral ground, not Pakistan
- Kane boost as Bayern host Leipzig with title rivals in hot pursuit
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- Myanmar junta FM briefs neighbours on election plans: Thai FM
- US, European, Chinese firms seek to draw Vietnam arms deals from Russia
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- HRW accuses Israel of 'acts of genocide' for restricting Gaza water access
- France's Macron arrives in cyclone-hit Mayotte to assess devastation
- Ivory Coast wants bigger share of its mining boom
- Greek women fight for 'right to the truth' over abuse and violence
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- France's Macron in cyclone-hit Mayotte to assess devastation
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Stock markets decline as Fed eyes fewer rate cuts
European and Asian stock markets slid Thursday following sharp losses on Wall Street as the Federal Reserve signalled fewer cuts to US interest rates next year.
In a busy week for rate decisions, the Fed on Wednesday trimmed borrowing costs by a quarter point but halved the number of similar cuts it expects to carry out in 2025.
The dollar initially rallied on the outlook, while the yen was pressured Thursday also after the Bank of Japan kept borrowing costs unchanged.
The Bank of England was widely expected to maintain its key interest rate in a decision due at 1200 GMT.
"Investors were blindsided as the Federal Reserve halved the expected pace of interest rate cuts for next year," noted Richard Hunter, head of markets at Interactive Investor.
All three main indices in New York were sent spinning Wednesday -- led by a rout in high-flying tech titans.
The Fed said it expected to cut just twice next year, down from a forecast of four quarter-point reductions signalled in September.
While inflation has "eased significantly", the level remains "somewhat elevated" compared to the Fed's long-term target of two percent, Fed chair Jerome Powell told reporters.
Powell said he remained "very optimistic" about the state of the US economy, adding that the Fed was now "significantly closer" to the end of its current easing cycle.
The Fed's revision came as a surprise even if investors had speculated about how the US central bank would position itself as president-elect Donald Trump prepares to take office.
Analysts said Trump's plans to cut taxes, slash regulations and impose tariffs on China risked reigniting inflation.
Jack McIntyre, a portfolio manager at Brandywine Global, said although the latest Fed rate-reduction had been priced in by markets, "when you include the forward guidance components, it was a hawkish cut".
"Stronger expected growth married with higher anticipated inflation -- it's no wonder the Fed reduced the number of expected rate cuts in 2025."
- Key figures around 1045 GMT -
London - FTSE 100: DOWN 1.4 percent at 8,086.92 points
Paris - CAC 40: DOWN 1.6 percent at 7,269.68
Frankfurt - DAX: DOWN 1.2 percent at 20,001.71
Tokyo - Nikkei 225: DOWN 0.7 percent at 38,813.58 (close)
Hong Kong - Hang Seng Index: DOWN 0.6 percent at 19,752.51 (close)
Shanghai - Composite: DOWN 0.4 percent at 3,370.03 (close)
New York - Dow: DOWN 2.6 percent at 42,326.87 (close)
Euro/dollar: UP at $1.0411 from $1.0365
Pound/dollar: UP at $1.2650 from $1.2581
Dollar/yen: UP at 156.91 yen from 154.73 yen
Euro/pound: DOWN at 82.33 pence from 82.38 pence
Brent North Sea Crude: UP 0.1 percent at $73.44 per barrel
West Texas Intermediate: FLAT at $70.04 per barrel
burs-bcp/ajb/cw
C.Kovalenko--BTB