European stocks hit 1-week low on gloomy US economic outlook

European stocks fell on Thursday, to deepen losses for the fourth straight day, dropping to a 1-week low, on investors' risk-aversion, after the Federal Reserve revealed its economic gloomy projections..

The Stoxx Europe 600 index fell 2.5% as of 11:25 GMT, and hit the lowest since June 3 at 358.93 points, after closing lower by 0.4% yesterday, extending losses for the third straight day, amid a risk-off move after the Fed meeting concluded.

The pan European index opened lower today, extending losses for the fourth day and dropping to a 1-week low, with most European markets and sectors seeing red today.

The travel and leisure sector saw the largest losses in Europe today, with a drop by 4%, on gloomy global economic outlook and renewed concerns about sharp losses in the second quarter.

The US Federal Reserve yesterday kept the interest rate unchanged between zero and 0.25%, in a widely expected move, and pledged to continue providing exceptional support to the economy amid the coronavirus crisis.

The Fed also revealed its first set of economic projections since December, estimating the US GDP to shrink 6.5% in 2020, which is the worst recession since the 2008 global financial crisis, and ruled out any rate hikes before 2022.

Fed chairman Jerome Powell said that the US faces a "long road" to recovery from the recession caused by the coronavirus pandemic, and added, "We don't even expect rates to rise this year or next."

S&P 500 futures fell 2%, after the index closed lower by 0.5% yesterday at Wall Street, posting the second straight daily loss after the Fed meeting.

Back to Europe, the Euro Stoxx 50 index fell 2.6%, France's CAC 40 dipped 2.7%, Germany's DAX fell 2.6%, and the UK's FTSE 100 fell 2.4%.