European stocks close: stocks closed lower on the Fed's outlook of the global economy

Stock indices closed lower on the Fed's outlook of the global economy. The Fed released its interest rate decision on Thursday. The Fed kept its interest rate unchanged at 0.00%-0.25%.

The Fed took into account the slowdown in the global economy and low inflation expectations. That was the main reason to keep the monetary policy unchanged.

"Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term," the Fed said.

The European Central Bank (ECB) Executive Board member Benoit Coeure said on Friday that monetary policies of the Eurozone and the U.S. have different directions.

"Whatever happens, and whatever the Fed's decision, the monetary trajectories in the euro zone and the United States are very different," he said.

Coeure also said that there is the downside risk to the global outlook.

He noted that the inflation and growth in the Eurozone are expected to be lower than previously expected.

Coeure pointed out that the central bank could extend its asset-buying programme if needed.

Meanwhile, the Eurozone's current account surplus declined slightly. Eurozone's current account surplus fell to a seasonally adjusted €22.6 billion in July from €24.9 billion in June. June's figure was revised down from a surplus of €25.4 billion.

The trade surplus rose to €26.9 billion in July from €26.6 billion in July, while primary income increased to €2.8 billion from €1.2 billion.

The surplus on services declined to €3.6 billion in July from €5.6 billion in June, while the secondary income increased to €10.7 billion from €8.4 billion.

Eurozone's unadjusted current account surplus soared to €33.3 billion in July from EUR 30.6 billion in June. June's figure was revised down from a surplus of €31.1 billion.

The Bank of England Chief Economist Andrew Haldane said in a speech on Friday that the central bank should lower its interest rate to boost inflation.

"Were the downside risks I have discussed to materialise, there could be a need to loosen rather than tighten the monetary reins as a next step to support UK growth and return inflation to target," he said.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,104.11 -82.88 -1.34 %

DAX 9,916.16 -313.42 -3.06 %

CAC 40 4,535.85 -119.29 -2.56 %