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The European single currency meanwhile slid to $US1.3370 the lowest level since mid November. It later recovered slightly to $1.3373, down from $1.3409 in New York on Tuesday.
Schneider Electric shares slumped 4.27 per cent in Paris after the electrical equipment maker reported weak first half results dragged down by poor European demand and unfavourable exchange rates.
Russian markets, however, rallied around 2.0 per cent as investors breathed a sigh of relief that sanctions were not tougher.
Barclays share price soared 4.2 per cent after the bank posted a 68 per cent jump in first half net profits, as it continued to shrink its investment bank division.
Economist Jonathan Loynes of Capital Economics predicted that the euro could fall to $US1.30 by the end of this year as the eurozone recovery remains weak compared with that of the United States.
"The US picture is one of solid underlying momentum. That should mean a first rate hike no later than April next year," Robert Wood, an economist with Berenberg, said.
In mid afternoon trading, the Dow Jones Industrial Average fell 0.53 per cent to 16,823.27.
Frankfurt main DAX index lost 0.62 per cent compared with Tuesday closing levels to end the day at 9,593.68 points.
The broad based S 500 lost 0.23 per cent to 1,965.33, while the Nike Lebron Xiii - Boys' Preschool tech heavy Nasdaq Composite Index was largely flat.
On Wall Street markets were weak despite news the economy rebounded in the second quarter to a peppy 4.0 per cent growth and news that job growth stayed strong for the fourth straight month.
Europe stock markets have sunk, weighed down by concerns that tougher sanctions against Russia could hurt the region economy despite news of a sharp rebound in US economic growth.
But Portugal main index closed down 3.33 per cent as investors expected troubled Banco Espirito Santo to report significant first half losses after the close.
In London, Royal Dutch Shell lost 1.37 per cent and BG Group retreated 1.75 per cent over fears that the sanctions on Russia could weigh on profits.
Airbus shares climbed 4.2 per cent after the defence group posted a stellar performance in the first half of the year, raising net profits by Nike Lebron 11
data, with Tokyo rising 0.18 per cent to hit a six month high at 15,646.23 points.
half and confirming its full year outlook.
In Asia, markets mostly rose on Wednesday as investors awaited the Fed decision and US Nike Lebron Mens Shoes
"The euro finally appears to be succumbing to the downward pressure implied by the divergent prospects for monetary policy in the US and eurozone," Mr Loynes said.
"The most obvious sector set to suffer on the back of various countries and regions imposing sanctions on Russia is energy a fact brought sharply into focus by comments from BP," IG Group chief market strategist, Brenda Kelly, said.
Traders said equities gave up earlier gains over fears that the upbeat data could tempt the Federal Reserve to tighten up monetary policy more quickly than expected.
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In Madrid, BBVA shares closed up 1.1 per cent, despite news its first half profits more than halved, after news that the Spanish economy grew by a better than expected 0.6 per cent in the second quarter.
Energy companies led the charge lower, after the United States and European Union agreed to expand restrictions against Moscow, targeting the Russian energy, defence and finance sectors.
European stocks hit
fell to the lowest level for more than four years this month also fuelled expectations that the European Central Bank may take new measures against deflation.
The ruble also gained 0.5 per cent to 35.56 to the dollar, and 0.34 per cent to 47.53 against the euro.
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