Investors Prepare for Key Fed Meeting

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LONDON – European stocks were mixed on Tuesday after a strong start to trading in November.

The pan-European Stoxx 600 hovered slightly below the flat line mid-afternoon, with mining stocks losing 3% to lead the losses while healthcare stocks rose 0.7%.

Investors around the world are bracing for a busy corporate earnings week, a key US Federal Reserve meeting and the October US Jobs Report (released Friday) which will provide the latest insight into the state of health of the world’s largest economy.

The much-anticipated Federal Open Market Committee meeting of the Federal Reserve began on Tuesday. The central bank is widely expected to announce that it will start cutting its $ 120 billion in monthly bond purchases and end the program entirely by mid-2022.

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Investors will also be attentive to the Fed’s comments on price hikes as inflation hits its highest level in 30 years. The meeting ends Wednesday.

In addition, global investors are following developments at the COP26 climate summit in Glasgow. The UN summit is widely seen as a watershed moment for world leaders to take decisive action to curb carbon emissions, but hopes are not high for ambitious goals.

Gains at a glance

European profits were also in the spotlight on Tuesday with the latest figures from Fresenius, HelloFresh, DSM, Adecco Group, Standard Chartered, BP and Ferrari.

Oil and gas giant BP beat third-quarter profit expectations on Tuesday, fueled by soaring energy prices.

The UK energy major posted earnings underlying replacement cost, a net profit indicator, of $ 3.3 billion for the third quarter, higher than analysts’ estimates of $ 3.1 billion, according to Refinitiv.

BP shares fell 3.4% by mid-afternoon.

HelloFresh shares jumped more than 21% after the German meal kit delivery company exceeded earnings expectations and increased its sales outlook, while announcing plans to launch into more international locations by mid-2022. The company is also committed to investing “hundreds of millions” in automation technology in the coming years as it seeks to meet ever-increasing demand.

Standard Chartered shares fell 8% after its results, while at the bottom of the European blue chip index, Swedish software company Sinch fell more than 16% after third quarter results.

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