European and USA markets have fallen after the Federal Reserve's decision on Thursday not to raise USA interest rates.
The Fed had cited concerns about weakening worldwide growth
and recent stock market volatility.
The FTSE 100 fell 1.34%, Frankfurt's Dax plunged 3.06%, and
in Paris the Cac 40 dropped 2.56%.
On Wall Street, stocks were pointedly lower, with the Dow
Jones down almost 1% in morning exchanging.
Brenda Kelly, head analyst at London Capital Group, said:
"Markets have taken signals from the US, but uncertainly wins and
choppiness is the main certain result. Deflation is a worry. China is a worry,
and oil costs look set to take another leg lower."
A few analysts said the Fed could even now raise rates this
year.
"The Fed's assessment of the worldwide financial
conditions has made investors nervous as uncertainty about the timing of a US
rate hike proceeds. We imagine that a rate hike could still be announced in
December," said Robert Parkes, equity strategist at HSBC.
But Michael Hewson, chief strategist at CMC Markets, said:
"The Fed's fairly downbeat outlook came as an unwelcome amazement, and
it's likely to take a while for investors to figure out whether the Fed is
seeing something that whatever is left of us aren't."