LONDON — European stocks are expected to plunge at the open on Thursday as global markets react badly to the latest monetary policy decision from the U.S. Federal Reserve.

United Kingdom’s FTSEIndex is forecast to open at 7,323, Germany, 147 points less DAXFrance’s 15071, France is down 379 points CAC 40 down 175 points at 6,804 and Italy’s FTSE MIBAccording to data from IG, 675 points were lower at 25,907

The global markets have reacted badly the Federal Reserve’s indication on Wednesday that it could soon raise interest rates for the first time in more than three years.

According to the Fed’s policymaking committee, a quarter percentage point rise in its benchmark short term borrowing rate would be possible. It would be: first increase since December 2018.

The post-meeting statement from the Federal Open Market Committee did not provide a specific time for when the increase will come, though indications are that it could happen as soon as the March meeting.  This statement was made in response to the fact that inflation is at an all-time high of nearly 40 years.

U.S. stocks initially rallied WednesdayEven though the Federal Reserve had indicated that an interest rate increase was imminent, overnight sentiment did not change.

U.S. stock futures fell Wednesday nightFutures that are tied to Dow fell by 398 points (or 1.17%) and erased previous gains. S&P 500 futures and Nasdaq 100 futures slipped 1.35% and 1.57%, respectively.

Asia-Pacific markets fell across the boardTomorrow night. Japan’s Nikkei 225 fell 3.3% while the Topix was down 2.3%. The benchmark was down 2.3% in South Korea. Kospi dropped 3.13% and in Hong Kong, the Hang Seng index and the Hang Seng Tech index dropped 2.56% and 4.61%, respectively. Chinese mainland shares declined as well.

Deutsche Bank, Unicredit, LVMH and SAP are the main earners in Europe on Thursday.

Renault will provide a strategic update about the Nissan/Mitsubishi alliance, and data-wise, Germany’s GfK consumer mood figures are due.

— CNBC’s Jeff Cox, Tanaya Macheel and Abigail Ng contributed reporting to this market report.