European stocks were mixed session on Thursday, supported by banks such as Commerzbank AG and Société Générale SA after well-received earnings reports. Investors were awaiting the outcome a Federal Reserve meeting as well.
What are markets doing?
The Stoxx Europe 600 SXXP, +0.18% wasup 0.3%, after Wednesday’s gain of 1.1%.
Germany’s DAX 30 DAX, -0.44% slipped 0.2% to 11,556.03, while France’s CAC 40 PX1, -0.15% eased 0.1% to 5,130.54. The U.K.’s FTSE 100 UKX, +0.43% gained 0.4% 7,143.27.
Italy’s FTSE MIB Italy index I945, -0.67% fell 0.6% to 19,432.39.
The euro EURUSD, +0.0438% slipped to $1.1424 from $1.1488 late Wednesday in New York, while the pound GBPUSD, +0.0000% fell to $1.3102 from $1.1326 late Wednesday in New York.
What is driving the market?
Investors were looking ahead to the outcome of a Federal Open Market Committee meeting, which isn’t expected to yield a change in interest rates. Investors will be eager to see whether the Fed will indeed stick to its mantra of gradual hikes in rates, even after October’s meltdown for stocks. Another U.S. event — midterms — drove a rally for European and global stocks on Wednesday.
On the data front, German exports fell unexpectedly, while a report from the European Commission also weighed some on sentiment after it said growth in the eurozone would slow from 2.1% in 2018 to 1.9% in 2019 and then 1.7% in 2020, weighed by trade worries, higher oil prices and general uncertainty.
What are strategists saying?
”It appears that investors are getting nervy ahead of the evening’s Fed statement. The central bank is expected to hold steady despite October’s bloody trading and the latest political reshuffle in the U.S., leaving an interest rate rise in December very much be on the cards,” said Connor Campbell, financial analyst at Spreadex.
Stock movers
Commerzbank AG CBK, +4.75% shares jumped over 6% after posting an earnings decline, but backed its 2018 outlook. Shares of Société Générale GLE, +2.88% rose nearly 3% after the French bank posted a 32% profit rise.
Rheinmetall AG RHM, +4.16% rose 4.4% after strong earnings and adjusted guidance.
Coca-Cola HBC AG CCH, +4.78% jumped over 4% after the bottling group said it remains upbeat on growth and posted a 2.6% revenue rise.
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