World equity markets declined on Thursday and were on track to snap a seven-session winning streak as U.S. stocks remained on the defensive while the U.S. dollar strengthened after the Federal Reserve kept interest rates unchanged.
The U.S. central bank held rates steady and said ongoing strong job gains and household spending had kept the economy on track. Its statement showed little change in the Fed’s outlook for the economy since the Fed’s previous meeting in September aside from noting that “business investment had moderated from its rapid pace earlier in the year.”
“The Fed has recognized that there is one part of the economy that is slowing a little bit, but it is not deterring them from their gradual increase language. Not yet anyway,” said Jamie Cox, managing partner at Harris Financial Group in Richmond, Virginia.