Friday, March 29, 2024
HomemarketsEurope ends under pressure as utilities slip 2%; Fed decision looms

Europe ends under pressure as utilities slip 2%; Fed decision looms

  • The pan-European Stoxx 600 finished down 0.24 percent provisionally, while sectors showed a mixed picture
  • Global markets were focused on the conclusion of the Fed's two-day policy meeting at which the central bank is widely expected to announce an interest rate hike — due after the European market close

European stocks ended Wednesday's trading session in the red, as investors waited for the outcome of the U.S. Federal Reserve's two-day policy meeting.

The pan-European Stoxx 600 finished down 0.24 percent provisionally, after what had been seen as a choppy trading session. Sectors, meanwhile, showed a mixed picture by the close.

Looking to Europe's bourses, the FTSE 100 slipped 0.05 percent, while France's CAC 40 and Germany's DAX slipped 0.51 and 0.44 percent respectively.

While sector performance was relatively mixed Wednesday, utilities ended up being the worst performers, with the sector slipping 2.11 percent by the end of trade.

Taking a look inside the sector, Germany's Innogy tumbled to the bottom, off 13.23 percent, after the group adjusted its guidance for the 2017 business year. Consequently the drop in shares weighed on other German utility firms, including RWE — which sank 13 percent — and EON, which was off almost 5 percent.

Switching focus, retailers outperformed a number of industries, boosted by Dixons Carphone. The electricals retailer posted a slump in first-half profits, as consumers were seen holding on to mobile handsets for longer than anticipated; yet CEO Seb James told BBC radio that the group's sales were at an all-time record high on Black Friday. Consequently, shares rose 8.48 percent.

Sticking with the sector, Inditex saw a slowdown in sales growth during its third quarter, due to warmer weather conditions during Europe's fall season. However the Zara-owner's shares rose 1.7 percent, following news that sales had risen both in-store and online during the last month.

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