European stocks fall after Fed flags uncertainty of U.S. recovery

European stocks were down Thursday morning after the U.S. Federal Reserve struck a pessimistic tone over the country’s economic recovery prospects.

The pan-European Stoxx 600 fell 1.2% in early trade, with basic resources shedding 2.5% to lead losses as all sectors and major bourses slid into negative territory.

In terms of individual share price action, Swedish investment firm EQT fell 6.6% to the bottom of the Stoxx 600 after its first-half results, while Swedish Match dropped 6%. At the top of the European blue-chip index, Danish IT consultancy Netcompany climbed 5.4% after strong first-half earnings.