European Markets Finished Mixed As Traders Await Fed Announcement

BRUSSELS/FRANKFURT/PARIS (Alliance News) – The European markets fluctuated between small gains and losses over the course of Tuesday’s session and ended the day with mixed results. The markets finished little changed overall, as investors exercised caution ahead of Wednesday’s policy decision from the Federal Reserve.

The Fed is widely expected to leave interest rates unchanged when it concludes its policy meeting after the European close tomorrow. However, traders will be looking for clues about the outlook for monetary policy.

The pan-European Stoxx Europe 600 index advanced 0.04%. The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.12%, while the Stoxx Europe 50 index, which includes some major UK companies, added 0.09%.

The DAX of Germany climbed 0.02% and the CAC 40 of France rose 0.16%. The FTSE 100 of the UK gained 0.30% and the SMI of Switzerland finished higher by 0.50%.

In Frankfurt, Hugo Boss dropped 3.64% after Morgan Stanley downgraded its rating on the stock to “Underweight” from “Equal-weight.”

In London, Ocado Group sank 2.25%. The online grocery delivery company reported higher sales in its third quarter, but signaled a further hit to earnings from costs of setting up new distribution centers.

Budget airline Ryanair rose 1.32% after halting talks on a flight connection agreement with Norwegian Air Shuttle.

Heineken NV tumbled 3.77% in Amsterdam after Mexico’s Femsa said it had sold a 5.24% stake in the world’s second largest brewer for EUR2.5 billion.

Solvay dropped 1.36% in Brussels. The multi-specialty chemical company has entered into a binding agreement with German chemical company BASF for the sale of its Polyamides business for an enterprise value of EUR1.6 billion.

Telia Company rose 2.68% in Stockholm after the telecom operator sold about 153.5 million shares in Turkcell Iletism Hizmetleri A.S.

The euro area current account surplus increased in July on higher primary income, the European Central Bank reported Tuesday. The current account surplus increased to a seasonally adjusted EUR25.1 billion in July from EUR22.8 billion in June.

Eurozone construction output increased for the second straight month in July, and at a stable pace, data from Eurostat showed Tuesday. Construction output climbed 0.2% month-over-month in July, the same rate of rise as in June, which was revised from a 0.5% decrease reported earlier.

Germany’s economic confidence strengthened notably in September, survey data from the Mannheim-based Centre for European Economic Research/ZEW showed Tuesday. The ZEW Indicator of Economic Sentiment rose by 7 points to 17.0 in September. The score was forecast to rise to 13.

The French government downgraded the budget deficit projections for this year and next, the Finance Ministry said Tuesday. The government currently forecast a deficit of 2.9% of gross domestic product for 2017 and 2.6% for 2018.

New residential construction in the US unexpectedly decreased in the month of August, according to a report released by the Commerce Department on Tuesday. The report said housing starts fell by 0.8% to an annual rate of 1.180 million in August from a revised 1.190 million in July. Economists had expected housing starts to jump by 1.7%.

The report also said building permits, an indicating of future housing demand, spiked by 5.7% to a rate of 1.300 million in August from a rate of 1.230 million in July.

A report released by the Labor Department on Tuesday showed increases in US import and export prices in the month of August.

The Labor Department said imports prices climbed by 0.6% in August after edging down by 0.1% in July. Economists had expected import prices to rise by 0.4%.

The report said export prices also rose by 0.6% in August following a 0.5% increase in the previous month. Export prices had been expected to edge up by 0.2%.

Copyright RTT News/dpa-AFX

Leave a Reply

Your email address will not be published. Required fields are marked *

5 × 2 =