European Markets Finish Mixed As Traders Await Fed Announcement

The European markets fluctuated between small gains and losses over the course of Tuesday’s session and ended the day with mixed results. The markets finished little changed overall, as investors exercised caution ahead of Wednesday’s policy decision from the Federal Reserve.

The Fed is widely expected to leave interest rates unchanged when it concludes its policy meeting after the European close tomorrow. However, traders will be looking for clues about the outlook for monetary policy.

The pan-European Stoxx Europe 600 index advanced 0.04 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 0.12 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.09 percent.

The DAX of Germany climbed 0.02 percent and the CAC 40 of France rose 0.16 percent. The FTSE 100 of the U.K. gained 0.30 percent and the SMI of Switzerland finished higher by 0.50 percent.

In Frankfurt, Hugo Boss dropped 3.64 percent after Morgan Stanley downgraded its rating on the stock to “Underweight” from “Equal-weight.”

In London, Ocado Group sank 2.25 percent. The online grocery delivery company reported higher sales in its third quarter, but signaled a further hit to earnings from costs of setting up new distribution centers.

Budget airline Ryanair rose 1.32 percent after halting talks on a flight connection agreement with Norwegian Air Shuttle.

Heineken NV tumbled 3.77 percent in Amsterdam after Mexico’s Femsa said it had sold a 5.24 percent stake in the world’s second largest brewer for 2.5 billion euros (2.21 billion pounds).

Solvay dropped 1.36 percent in Brussels. The multi-specialty chemical company has entered into a binding agreement with German chemical company BASF for the sale of its Polyamides business for an enterprise value of 1.6 billion euros.

Telia Company rose 2.68 percent in Stockholm after the telecom operator sold about 153.5 million shares in Turkcell Iletism Hizmetleri A.S.

The euro area current account surplus increased in July on higher primary income, the European Central Bank reported Tuesday. The current account surplus increased to a seasonally adjusted EUR 25.1 billion in July from EUR 22.8 billion in June.

Eurozone construction output increased for the second straight month in July, and at a stable pace, data from Eurostat showed Tuesday. Construction output climbed 0.2 percent month-over-month in July, the same rate of rise as in June, which was revised from a 0.5 percent decrease reported earlier.


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