(MENAFN– ecpulse)
Equities markets turned mixed in early European trades as investors took profits and waited for cues from the U.S. Federal Reserve`s two-day policy meeting that concludes later today. U.S. stock-index futures and Asian shares were also little changed.
The Stoxx Europe 600 Index fell 0.16 percent, 0.55 points to trade at 337.57 after climbing to a three-week high in the previous session as investors as investors remained cautious ahead of a Federal Reserve decision on monetary policy and data on growth in the world’s largest economy.
The Fed is expected to announce a fourth consecutive reduction in its monthly bond-buying program to $45 billion at the two-day meeting that concludes today, citing a recent pick-up in economic activity following a brutal winter.
Fed’s decision on monetary policy is expected to overshadow the release of reports on private sector employment and first quarter Gross Domestic Product (GDP). The U.S. economy probably expanded at a 1.2 percent annualized rate from January through March - the weakest pace since the first quarter of 2013.
Earlier in the day, the Bank of Japan announced that it would keep buying assets to increase the monetary base by an annual 60-70 trillion yen in an attempt to maintain the pace of economic recovery. However, Tokyo stocks bucked the trend of a broader fall across many Asian bourses.
In Opening Trade:
- British FTSE 100 rose slightly 0.03%, 1.93 point to 6,771.84
- German DAX fell 0.11%, 10.74 points to 9,573.38
- French CAC 40 dipped 0.38%, 16.93 points to 4,480.75
Pro-Russian Militants Seize More Offices in Ukraine
The European markets rallied on Tuesday, buoyed by better-than-expected corporate earnings, solid British economic growth data and hopes the Ukraine crisis would be settled peacefully.
Concerns that the Ukraine crisis may worsen intensified today Pro-Russia militants seized more state offices in Ukraine’s troubled east, in what appears to be of response to the latest Western sanctions announced against them and their presumed backers in the Kremlin.
Mixed Earnings, Alstom Rallies on Deal
The struggling French engineering giant Alstom rallied Tuesday after its board accepted General Electric`s (GE.N) $13.82 billion bid for its energy unit. Alstom also left open the possibility of a deal with Siemens and said it would establish a committee to review the G.E. proposal before the end of May.
Shares in Alstom, the world’s leading energy solutions and Transport Company, were suspended since last week, but trading started again following today’s announcement - and had jumped 12 percent by session’s opening.
On Other Corporate News:
Lender BNP Paribas posted Wednesday solid earnings with a forecast-beating 5.2 percent rise in net profit for the first quarter of 2014 in an economic environment still lackluster in Europe. Net profit came in at €1.668 billion in the first quarter of this year, beating analysts` expectations of €1.39 billion.
As of 10:45 AM CEST, BNP Paribas SA share fell 3.54%, 1.98 points to €53.92.
The European oil giant Royal Dutch Shell reported Wednesday a 45 percent decline in first-quarter earnings compared with a year earlier, due to a $2.9 billion charge reflecting impairments related to refineries in Asia and Europe.
As of 09:47 AM BST, Royal Dutch Shell PLC share added 3.77%, 86.00 points to £2,365.50
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.