LONDON – European stock markets were mostly lower on Tuesday as global markets awaited the U.S. Federal Reserve’s interest rate decision.
pan-european Stocks 600 Most major exchanges fell into negative territory, with the stock down 0.3% after the London market close. The sectors were mixed. Among the green sectors was the utilities sector, seen as a slightly more stable investment amid market volatility, rising 1%. Mining stocks related to critical minerals and rare earths also closed 1% higher.
spanish ibex 35 The index has been on a bull run, up nearly 40% since the start of the year, briefly surpassing its all-time high set in 2007 on Tuesday morning. The index ended 0.5% higher.
Meanwhile, Britain’s FTSE 100 rose throughout the session, hitting an all-time high of more than 9,700 points. The stock ended 0.4% higher.
Tuesday’s move marked a reversal from the previous session, when stocks ended higher on hopes of easing trade tensions between the U.S. and China. President Donald Trump and Chinese President Xi Jinping are scheduled to meet in South Korea on Thursday.
The two sides appear to be in a conciliatory mood, having agreed on a framework for trade agreements surrounding China’s rare earth export restrictions, soybean purchases, and TikTok.
“I have great respect for President Xi, and we are going to reach an agreement,” Trump said Monday. The two leaders are scheduled to hold talks on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.
Looking at individual stocks, Philips fell 6% after the U.S. Food and Drug Administration issued a warning to medical device manufacturers over standards at three manufacturing facilities.
shares of Novartis Shares fell 4.1% by the close of trading after the Swiss pharmaceutical giant announced its results for the three months to September. The company’s fixed currency sales increased 7% year-over-year in the third quarter, and net income reached $3.9 billion, an increase of 25% year-over-year. Analysts had expected net income to be $4.4 billion, according to consensus estimates compiled by LSEG.
In financial services, BNP ParibasShares fell 3.5% after the French lender said it reported group pre-tax profits of 4.28 billion euros, beating analysts’ expectations of 3.44 billion euros, according to LSEG. The bank’s revenue for the period amounted to approximately 12.6 billion euros, slightly below the 12.8 billion euros expected by analysts. BNP’s third-quarter earnings report noted that “certain credit conditions” arose during the quarter that increased the cost of risk for its Global Markets division.
On the other hand, London-listed stocks are HSBC Shares rose 4.6% after the company’s third-quarter profit exceeded expectations.
Elsewhere, the Financial Times reported on Tuesday that Britain’s Office for Budget Responsibility (OBR) is expected to cut its productivity growth forecast more than expected, potentially adding an additional 20 billion pounds ($26.6 billion) to the country’s fiscal hole. Chancellor of the Exchequer Rachel Reeves is already scrambling to fix a hole in the public finances that could reach up to £50bn when she presents her crucial autumn budget next month.
The British pound fell on Tuesday. It fell against both the dollar and euro, each down about 0.5%.
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The big event this week for investors is the two-day Federal Reserve Board meeting starting Tuesday. Markets are currently pricing in a 96% chance that the U.S. central bank will announce a 25 basis point rate cut this week, according to the CME FedWatch tool.
Traders are also hoping for a signal from Fed Chairman Jerome Powell on Wednesday that he will cut rates again at his final meeting of the year in December, given concerns about a weakening labor market.
Last week’s inflation report was one of the few data released recently as the Federal Reserve grapples with a blackout in economic data as the U.S. government shutdown continues.
—CNBC’s Pia Singh, Tasmin Lockwood and Hugh Leask contributed to this market report.
