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European stocks mostly lower after Fed statement; DAX down 0.25%

Published 07/28/2016, 03:28 AM
© Reuters.  European stocks slide lower after Fed inaction, earnings

Investing.com - European stocks were mostly lower on Thursday, as markets digested the Federal Reserve’s most recent policy decision and eyed a string of fresh earnings reports.

During European morning trade, the EURO STOXX 50 slipped 0.14%, France’s CAC 40 added 0.24%, while Germany’s DAX 30 fell 0.25%.

In a widely expected move, the Fed left interest rates unchanged at the conclusion of its two-day policy meeting on Wednesday.

In its monthly policy statement, the Fed said that “near-term risks to the economic outlook have diminished” and that the labor market has “strengthened”.

The upbeat outlook fuelled speculation over a rate hike by the U.S. central bank before the end of the year.

Financial stocks were mixed, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) gained 0.07% and 2.48%, while Germany’s Deutsche Bank (DE:DBKGn) tumbled 1.65%.

BNP Paribas earlier reported better-than-expected second-quarter profit.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) slid 0.27% and 0.74% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) fell 0.08% and 0.27%.

Elsewhere, Total SA (PA:TOTF) reported a 30% year-on-year drop in second-quarter net income to $2.2 billion, but a quarter-on-quarter rise. Shares in the French oil and gas giant climbed 0.55%.

In London, FTSE 100 slid 0.30%, weighed by losses in the financial sector.

Shares in HSBC Holdings (LON:HSBA) and the Royal Bank of Scotland (LON:RBS) dropped 0.42% and 0.62% respectively, while Barclays (LON:BARC) lost 0.97% and Lloyds Banking (LON:LLOY) plunged 3.50%.

Meanwhile, mining stocks were mostly higher on the commodity-heavy index, as BHP Billiton (LON:BLT) jumped 1.25% and Rio Tinto (LON:RIO) rallied 1.28%, while rival Fresnillo (LON:FRES) surged 3.09%.

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Also on the upside, Diageo (LON:DGE) edged up 0.21% after the drinks giant said full-year 2016 net profit was £2.24 billion, with full-year sales totaling £10.49 billion.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.20% rise, S&P 500 futures a 0.23% increase, while the Nasdaq 100 futures indicated a 0.13% gain.

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