European stocks slip as Fed caution offsets upbeat bank earnings Travel stocks ease from record highs as Deutsche posts best quarter since 2014
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European shares gave up opening gains on Wednesday, as caution crept in ahead of the US Federal Reserve’s policy decision, but strong results from Deutsche Bank and Lloyds Banking Group boosted earnings optimism.
The pan-European STOXX 600 index slipped 0.3 per cent, with travel and leisure stocks easing from all-time highs, and miners retreating after a recent rally.
The region’s banking sector was up 0.3% and insurers rose 0.6 per ent.
Deutsche Bank jumped 6.5 per cent to the top of STOXX 600, as strength at its investment bank helped the German bank post a better-than-expected first-quarter net profit.
ASX to rise, Wall St edges lower
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Australian shares are poised to rise at the open, amid optimism for commodity prices. Federal Reserve policymakers struck a positive tone overall on the US economy though held, as expected, interest rates unchanged near zero.
ASX futures were up 18 points or 0.3% to 7059 near 6.57am AEST. The currency was 0.4 per cent higher.
The yield on the US 10-year note was 1 basis point lower to 1.61 per cent at 4.59pm in New York; it was at 1.64 per cent before the Fed statement was released.
At the post-meeting news conference, Fed boss Jerome Powell said there were no plans to lift interest rates or to slow purchases of securities.
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(Reuters) -European stocks ended flat on Wednesday as optimism over a swathe of positive bank earnings was offset by caution setting in before the U.S. Federal Reserve’s policy decision.
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 27, 2021. REUTERS/Staff
The pan-European STOXX 600 index ended largely unchanged, with bank stocks .SX7P leading gains among the regional sectors. The subindex ended 1.5% higher.
Deutsche Bank jumped 10.7% to the top of the STOXX 600, as strength at its investment bank helped the German lender post a better-than-expected first-quarter net profit.
Spanish bank Santander rose 2.7% after it beat first-quarter forecasts with its profit, while not adding to provisions for the pandemic and booking record U.S. earnings.
European stocks slip as Fed caution offsets upbeat bank earnings reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.