BANGKOK (AP) — Global stock markets fell Friday, two days after the Fed announced it would keep its unprecedented stimulus in place. Public holidays kept trading muted in Asia.
The Nikkei 225 index in Tokyo gave up early gains to close 0.2 percent lower at 14,742.42. Markets elsewhere also ran out of gas following big rallies that were sparked by the U.S. Federal Reserve's surprise decision Wednesday to refrain from reducing its $85 billion in monthly asset purchases.
European stocks fell in early trading and Wall Street appeared headed for a lower open too.
Britain's FTSE 100 fell slightly to 6,621.32. Germany's DAX shed 0.1 percent to 8,686.42. France's CAC-40 lost nearly 0.2 percent to 4,199.87. Dow Jones industrial futures slipped marginally to 15,567. S&P 500 futures were down 0.1 percent to 1,716.50.
Many traders had expected the Fed to start scaling back its asset purchase program, instituted in the aftermath of the 2008 financial crisis to help keep afloat a recession-mired U.S. economy. The program was used to increase the flow of money available for loans to spur growth, and also push down interest rates.
The low interest rate environment proved a boon for stock markets, where investors fled with their money in search of higher returns.
That is a key reason why stock markets rejoiced when the Fed left its "quantitative easing" program untouched earlier this week — even though the Fed is maintaining the program because the U.S. economic recovery is weak.
