MW: European stocks gain as corporate results roll in; Fed in focus
European stocks rose Wednesday, as investors waded through corporate earnings ahead of the Federal Reserve’s policy statement, watched for clues on what’s next for U.S. interest rates.
The Stoxx Europe 600 SXXP, +0.04% was up 0.3% to 407.48, but has been darting between gains and losses. Energy and basic materials shares trailed other sectors.
Among movers, Delhaize Group SA DELB, -7.67% was among the sharpest decliners, with shares falling 6.2% following the Belgian food retailer’s first-quarter results. Revenue rose 16% to 5.82 billion euros ($6.39 billion), on the stronger dollar and sales at its U.S. grocery chains. Group underlying operating profit was €173 million, and both Jefferies and Rabobank said that figure came in below expectations.
But Next PLC NXT, +2.86% was among the best performers as its shares rose 3.5%. The British clothing retailer said an earlier launch for its summer lineup contributed to a 3.2% rise in full-price sales, ahead of expectations.
European traders on Wednesday “will find it difficult not to focus on this evening, not as they wish the day away, but due to the importance that will be attached to the phraseology of the latest U.S. Federal Open Market Committee statement,” said Alastair McCaig, market analyst at IG, in a note.
The first-quarter U.S. gross domestic product report is due later Wednesday, followed by the Fed’s policy statement. A recent run of soft economic data has propelled speculation the Fed will hold off in raising interest rates in June.
McCaig said a poll released Tuesday in London supported the view that a U.S. interest-rate hike will take place in September, “and tonight’s statement will demonstrate how close that thinking is to the truth.”
On the country indexes, the U.K.’s FTSE 100 UKX, +0.17% picked up 0.3% at 7,052.51. Germany’s DAX 30 DAX, +0.05% rose 0.3% to 11,847.95, and France’s CAC 40 PX1, -0.02% gained 0.3% to 5,190.01.
