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European stocks recoil at open

London - European stocks slid on Friday in opening trade as investors paused for breath following a global rally after US and Japanese central banks kept their easy-money policies in place.

In initial trade, London's benchmark FTSE 100 index shed 0.3% to 6 893.22 points compared with the closing level on Thursday.

In the eurozone, Frankfurt's DAX 30 declined 0.1% to 10 662.49 points and the Paris CAC erased 0.3% in value to stand at 4 494.50.

Investors also took their foot off the pedal in Asia on Friday after two days of strong gains while the dollar recovered some ground on the yen after the Fed's decision to hold interest rates sent it tumbling.

"The Fed-fuelled rally that catapulted shares out of the summer doldrums this week is showing some signs of fatigue," noted analyst Jasper Lawler at trading firm CMC Markets.

"The immediate reaction across markets to the Fed's decision to keep rates on hold again has been that of lower treasury yields, higher stock prices and a weaker dollar.

"This reflects an understanding that the Fed is not about to raise rates for at least three months. It could easily be longer if US economic data remains sluggish."

World equities and high-yielding currencies have soared since Wednesday when the Bank of Japan said it would target boosting inflation and the Fed also pressed on with policies that makes cash cheap.

Tokyo's stock market - which was closed on Thursday for a holiday a day after surging 1.9% on Wednesday - receded on Friday as a stronger yen offsetting the euphoria of the BoJ's easy money move.

At the close, Tokyo's benchmark Nikkei 225 index was down 0.32%.

"While the Federal Reserve interest rate decision is attracting the most headline attention, the major market action this week has been in the Japanese yen where traders have once again rejected the efforts by the Bank of Japan (BoJ) to resume weakness in the Japanese yen," said FXTM analyst Jameel Ahmad.

"Despite the BoJ making a significant change to its policy framework ... investors rejected the efforts in spectacular fashion with this leading to the dollar returning to the major psychological level around ¥100."

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