Europe shares halt 2-week rally after Fed's tougher tone

jueves 30 de octubre de 2014 07:47 GYT

* FTSEurofirst 300 down 0.8 pct, Euro STOXX 50 down 1.4 pct

* Fed ends QE, which has been strong support for stocks

* Alcatel, Renault rise after robust results

By Blaise Robinson

PARIS, Oct 30 (Reuters) - European stocks dropped on Thursday, halting their two-week rally after the U.S. Federal Reserve sounded less dovish on policy as it ended its six-year bond-buying programme.

At 1126 GMT, the FTSEurofirst 300 index of top European shares was down 0.8 percent at 1,309.31 points, after rising nearly 9 percent since a 13-month low hit on Oct. 16.

As expected, the U.S. central bank on Wednesday ended its stimulative quantitative easing scheme, but a relatively hawkish tone to the accompanying statement prompted investors to rethink the consensus that the first U.S. interest rate hike would be late in 2015.

"This is a key step for the Fed, and despite market jitters in the short-term, it's a necessary move as the U.S. economy is in a pretty good shape," said Jeanne Asseraf-Bitton, head of global cross-asset research, at Lyxor Asset Management.

"The global economy doesn't need more liquidity at this point, it needs economic growth."   Continuación...