- Honda and Nissan expected to begin merger talks
- 'Draconian' Vietnam internet law heightens free speech fears
- Israeli women mobilise against ultra-Orthodox military exemptions
- Asian markets track Wall St rally as US inflation eases rate worries
- Tens of thousands protest in Serbian capital over fatal train station accident
- Trump vows to 'stop transgender lunacy' as a top priority
- Daniels throws five TDs as Commanders down Eagles, Lions and Vikings win
- 'Who's next?': Misinformation and online threats after US CEO slaying
- Only 12 trucks delivered food, water in North Gaza Governorate since October: Oxfam
- Langers edge Tiger and son Charlie in PNC Championship playoff
- Explosive batsman Jacobs gets New Zealand call-up for Sri Lanka series
- Holders PSG edge through on penalties in French Cup
- Slovak PM Fico on surprise visit to Kremlin to talk gas deliveries
- Daniels throw five TDs as Commanders down Eagles
- Atalanta fight back to take top spot in Serie A, Roma hit five
- Mancini admits regrets over leaving Italy for Saudi Arabia
- Run machine Ayub shines as Pakistan sweep South Africa
- Slovak PM Fico on surprise visit to Kremlin
- Gaza rescuers say Israeli strikes kill 35
- 'Incredible' Liverpool must stay focused: Slot
- Maresca 'absolutely happy' as title-chasing Chelsea drop points in Everton draw
- Salah happy wherever career ends after inspiring Liverpool rout
- Three and easy as Dortmund move into Bundesliga top six
- Liverpool hit Spurs for six, Man Utd embarrassed by Bournemouth
- Netanyahu vows to act with 'force, determination' against Yemen's Huthis
- Mbappe back from 'bottom' as Real Madrid down Sevilla
- Ali hat-trick helps champions Ahly crush Belouizdad
- France kept on tenterhooks over new government
- Salah stars as rampant Liverpool hit Spurs for six
- Syria's new leader says all weapons to come under 'state control'
- 'Sonic 3' zips to top of N.America box office
- Rome's Trevi Fountain reopens to limited crowds
- Mbappe strikes as Real Madrid down Sevilla
- 'Nervous' Man Utd humiliated by Bournemouth
- Pope again condemns 'cruelty' of Israeli strikes on Gaza
- Lonely this Christmas: Vendee skippers in low-key celebrations on high seas
- Troubled Man Utd humiliated by Bournemouth
- 2 US pilots shot down over Red Sea in 'friendly fire' incident: military
- Man Utd embarrassed by Bournemouth, Chelsea held at Everton
- France awaits fourth government of the year
- Germany pledges security inquest into Christmas market attack
- Death toll in Brazil bus crash rises to 41
- Joshua bout only fight left for beaten Fury says promoter Hearn
- Odermatt stays hot to break Swiss World Cup wins record
- Neville says Rashford's career at Man Utd nearing 'inevitable ending'
- Syria's new leader vows not to negatively interfere in Lebanon
- Germany pledges security inquest after Christmas market attack
- Putin vows 'destruction' on Ukraine after Kazan drone attack
- Understated Usyk seeks recognition among boxing legends
- France awaits appointment of new government
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
S.F.Warren--AMWN