The FTSE 100 ( ^FTSE ) and European stocks were lower on Thursday after the Federal Reserve followed the Bank of England in cutting interest rates on Thursday.

The policy decision was a widely expected 25bp cut, which took the target range for the fed funds rate down to 4.50-4.75%.

The Fed kept the view that “the risks to achieving its employment and inflation goals are roughly in balance."

Fed chair Jerome Powell avoided sending any signal about the December meeting, emphasising the data still to come before then.

Elsewhere in Europe, there has been plenty happening in German politics after the federal coalition broke up on Wednesday night.

The breakup happened after chancellor Scholz of the SPD dismissed finance minister Christian Lindner, who also leads the FDP, and the other FDP ministers then left the coalition as well.

In turn, Scholz said he would call a vote of no confidence on 15 January, which would pave the way for new federal elections after that.

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