European Stocks Steady Ahead of Fed Decision
European markets finished flat on Wednesday, as investors focus on the Federal Reserve's monetary policy guidance.
The pan-European Stoxx 600 was slightly lower, although the majority of the sectors were in the green. Major bourses pointed in different directions. Euro zone blue chips slipped 0.1 percent.
European banking stocks were on focus, as the sector fell 0.5 percent. Investors await the announcement of the U.S. Federal Reserve's meeting for indications as to whether a third interest rate rise will happen this year.
The telecom sector climbed 0.1 percent. Nearly every stock index was trading higher with Deutsche Telekom among the largest advancers after Kepler Cheuvreux increased its stock recommendation for the company to “buy” from “hold”. The German telecommunications giant rose nearly one percent.
Steelmaker Thyssenkrupp climbed over three percent after it reached a preliminary deal with India's Tata Steel to merge their European steel operations in a 50-50 joint venture. Thyssenkrupp soared over two percent on the report.
Home improvement retailer Kingfisher leaped 6.7 percent, the best advancer, after it posted a better-than-expected profit for the first half.
Spanish retailer Inditex dropped two percent, but the company saw gross margins decline in the first half as a result of a firm euro. Some analysts maintained their upbeat outlook on the longer-term outlook for the Spanish company, which is among the most richly valued stocks in the European retail sector.