Frankfurt/Berlin (Reuters) – Before the US Federal Reserve’s interest rate decision, investors in Europe held back from making larger investments.
The Dax closed 0.4 percent lower on Wednesday at 16,903 points. The EuroStoxx50 lost 0.3 percent to 4,647 points. According to poor Big Tech figures, the most important US indices were also significantly in the red.
A new interest rate break when the Federal Reserve decides at 8:00 p.m. (CET) is considered a given. However, stock market investors are hoping for indications of the timetable for the expected easing of monetary policy. The futures markets are pricing in a first interest rate cut in April and a total of five steps downwards this year.
OIL PRICE INITIALLY WEAKER ACCORDING TO CHINA DATA
The oil market fell after weak economic data from China. The North Sea crude oil type Brent fell by 1.2 percent to $8.86 per barrel, the US type WTI cost 2.1 percent less at $76.18. Production in the world’s second-largest oil consumer fell for the fourth month in a row in January. “Chinese industry is under pressure because China is recovering poorly and demand from abroad is also weak at the moment,” said Lynn Song, chief economist at Dutch ING Bank.
However, oil prices remained close to Monday’s two-month high and on track for their first monthly gain since September. The recent rally on concerns about war in the Middle East could also continue, analysts say. “Crude has yet to catch up from the events of the last few days,” said Tony Sycamore, analyst at broker IG, referring to a deadly drone attack on U.S. troops near the Jordanian-Syrian border last week.
NOVARTIS AND RAIFFEISEN UNDER PRESSURE
The accounting season for companies continued. Atoss, which gained 4.1 percent, was in demand on the Frankfurt stock exchange. The Munich-based personnel planning specialist has exceeded its sales and profit expectations and is aiming for new record values in 2024. Investors also stocked up on Santander shares, which rose 2.1 percent. The Spanish bank posted a strong fourth-quarter profit boost thanks to growing lending business in Europe and Brazil.
Novartis’ financial report, however, was not well received by investors. The Swiss pharmaceutical company’s shares fell 3.5 percent. The company’s fourth-quarter net income was below analysts’ forecast. The previously “unusually low” costs had caused some analysts to make overly optimistic forecasts, said CFO Harry Kirsch. The costs therefore developed according to plan.
Raiffeisen Bank International also flew out of the depots. The shares of the second largest Austrian bank fell by 3.4 percent in Vienna. The financial institution recorded a decline in profits of around a third in the past financial year.
In Stockholm, H&M shares fell by 12.4 percent. The Swedish fashion group disappointed with its figures for the past quarter and is surprisingly getting a new boss. Daniel Erver will take over the role from Helena Helmersson with immediate effect, H&M announced.
(Report by Zuzanna Szymanska and Ralf Bode; Edited by Scot W. Stevenson; If you have any questions, please contact our editorial team at [email protected] (for politics and economics) or [email protected] (for companies and markets).)