European markets in red on FOMC minutes, EUR on the rise

FXstreet.com (Edinburgh) -The cautious tone continues to prevail amongst traders in Euroland on Tuesday, with the main indices extending its recent losses ahead of the FOMC minutes due tomorrow. Markets also followed the grim mood from yesterday’s session in Wall St. and the sharp losses in Asian stocks today. The IBEX35 is down 1.94%, followed by the CAC40, 1.45% and the DAX, 1.23%. The EUR/USD is now hovering over session highs in the 1.3380/90 band, gathering traction after bottoming out around 1.3325/20.

Jitters on the Fed scaling back its monthly purchases of bonds redounded in today’s sharp sell-off in both emerging and developed Asian markets, with the NIKKEI22 retreating 2.63% and seconded by the Hang Seng, 2.20% and the Shanghai, 0.60%.