ROME: European stocks have tumbled on weak US economic growth data, and before the outcome of the Federal Reserve’s latest monetary policy meeting.
Frankfurt’s blue-chip DAX 30 index plunged 3.2 per cent on Wednesday to close at 11,433 points, while the CAC 40 in Paris lost 2.6 per cent to 5,039 points.
London’s benchmark FTSE 100 fell 1.2 per cent to end the day 6,946 points.
“The US economy had a bad start to the year,” Berenberg senior economist Christian Schultz said.
“Bad weather in the eastern parts of the country, port strikes in the west and dollar strength all combined for significant headwinds, which more than offset the tailwind from cheap oil for consumers.”
The euro meanwhile climbed to a three-week peak against the US dollar at $US1.1064 as the greenback took a hit on the slowing US growth.
The world’s biggest economy reported first quarter GDP growth figures of just 0.2 per cent, well below the 1.0 per cent rate anticipated by analysts and sharply down from the 2.2 per cent pace in the previous three months.
