Investors gear up for key Fed meeting
LONDON — European stocks closed mixed on Tuesday after a strong start to trading in November.
The pan-European Stoxx 600 closed up by 0.11%, with mining stocks shedding 2.8% to lead losses while health care stocks added 1.2%.
Investors around the world are gearing up for a busy week of corporate earnings, a key U.S. Federal Reserve meeting and October’s U.S. jobs report (out on Friday) which will give the latest indication of the state of health of the world’s biggest economy.
The Federal Reserve’s highly-anticipated Federal Open Market Committee meeting kicked off on Tuesday. It is widely expected to lead to the central bank announcing it will begin to wind down its $120 billion in monthly bond purchases and end the program entirely by the middle of 2022.
Investors will also be looking for the Fed’s comments on rising prices as inflation has been running at a 30-year high. The meeting concludes on Wednesday.
In other news, global investors are following developments at the COP26 climate summit in Glasgow. The UN summit is widely seen as a make-or-break moment for global leaders to take decisive action to limit carbon emissions but hopes are not high for ambitious targets.
European earnings were also in focus on Tuesday with the latest figures coming from Fresenius, HelloFresh, DSM, Adecco Group, Standard Chartered, BP and Ferrari.
The British energy major posted an underlying replacement cost profit, a proxy for net profit, of $3.3 billion for the third quarter, above analyst estimates of $3.1 billion, according to Refinitiv. BP shares fell 3.4%.
HelloFresh shares surged more than 17% after the German meal kit delivery firm beat profit expectations and increased its sales outlook, while announcing plans to launch in more international locations by mid-2022. The company also vowed to invest “hundreds of millions” into automation technology in the coming years as it looks to meet ever-growing demand.
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