European stocks are expected to open lower on Thursday as global markets react to the Federal Reserve’s signal that rate hikes will come sooner than expected.

London’s FTSE is seen opening 43 points lower at 7,145, Germany’s DAX down 59 points at 15,651, France’s CAC 40 down 24 points at 6,626 and Italy’s FTSE MIB down 80 points at 25,668, according to IG.

Global market sentiment has been dominated overnight by the reaction to the latest Fed policy meeting in which the central bank raised inflation expectations and forecast rate hikes as early as 2023.

As expected, the policymaking Federal Open Market Committee unanimously left its benchmark short-term borrowing rate anchored near zero. But officials indicated that rate hikes could come as soon as 2023, after saying in March that it saw no increases until at least 2024. The so-called dot plot of individual member expectations pointed to two hikes in 2023.

U.S. stocks fell during Wednesday’s regular session after the Fed’s initial statement and economic projections and overnight; U.S. stock futures dipped slightly in overnight trading and shares in Asia-Pacific were mixed on Thursday morning.

U.S. markets rallied off their intraday lows Wednesday after Fed Chair Jerome Powell said projections for future rate increases should be “taken with a big grain of salt” and reiterated that he believes that inflation is transitory.

Powell also did not issue guidance on when the central bank will begin tapering its bond-buying program.

The Fed chair said the central bank will continue to monitor the economic recovery and will provide “advanced notice” before announcing any updates regarding tapering.

Read more: The Fed moves up its timeline for rate hikes as inflation rises

Earnings releases in Europe on Thursday include Halfords’ full-year preliminary results, Dr. Martens’ full-year results and on the data front, a handful of European countries release new car registration data for May. Final euro zone inflation figures for May are also due.