*
STOXX 600 up 0.2%
*
All eyes on Fed
*
U.S. stock futures dip
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You
can share your thoughts with us at
TRAVEL NAMES SUPPORT STOXX AS INSURERS DRAG (0912 GMT) European shares are faring better than earlier futures trading suggested, with the STOXX 600 moving as much as 0.5% higher in early trading. The index is last up 0.2%.
Shares in Novartis - down 1.3% after fourth quarter results - are the biggest drag on the index on a net point weighted basis.
Sweden's Husqvarna , the world's biggest maker of gardening power tools, is the
biggest riser, up 6.1% after Q4 results, while German reinsurer Hannover is at the
bottom of the index, down 4.6%. Insurers are the biggest sectoral losers, down 0.4%.
Travel and leisure names are the sector winner of the morning, up 1.05% and
supported by TUI shares which are up 2.2%.
(Lucy Raitano)
*****
LIGHTS, CAMERA, ACTION (0747 GMT)
Global markets face their biggest test so far this year as the Federal Reserve appears
poised to hint of an end to interest rate hikes at its meeting on Wednesday.
Investors are pricing in a quarter-of-a-percentage-point increase in the Fed's benchmark
interest rate, which would mark the smallest hike since U.S. central bankers kicked off their
tightening cycle 10 months ago with one the same size.
Still, there's an air of caution, with markets leaving little scope for any nasty surprises.
In Europe, the region's central bank is expected to deliver 50-basis-point rate rises at
each of its next two meetings, with the first one taking place on Thursday.
But the forecasts still risk lagging behind policymakers' guidance on how high rates will
go.
The Bank of England is also expected to raise its interest rates by half a percentage point
to 4% on Thursday.
For today, European markets will focus on euro zone January flash PMI data, while results
are due from Vodafone , GSK and Novartis .
While the euro zone unexpectedly managed to avoid a recession in the fourth quarter, high
energy costs, waning confidence and rising interest rates are expected to take a toll on the
economy this year.
Germany and Italy figured among the biggest euro zone countries that recorded negative
growth rates for the quarter but France and Spain expanded.
Surveys published on Wednesday showed Asia's factory activity contracted in January as the
boost from China's COVID reopening had yet to offset headwinds from slowing U.S. and European
growth, underscoring the fragility of the region's economic recovery.
Asian stock markets held steady, supported by signs of a slowdown in U.S. wages that buoyed
Wall Street overnight.
Meanwhile, European Union banking regulators on Tuesday launched a stress test to check how
banks could cope with a long period of high inflation and interest rates just as the European
Central Bank is expected to raise borrowing costs further.
Bayer came under pressure after a top-10 shareholder called on the group's
supervisory board to replace CEO Werner Baumann quickly, in a move aimed at restoring investor
trust and reviving the German drugmaker's sagging share price.
Key developments that could influence markets on Wednesday:
Economic data: Euro zone Jan flash PMI
Europe results: Vodafone, GSK, Novartis, Banco Bilbao
Fed rate decision at 1900 GMT followed by news conference at 1930 GMT
U.S. economic data: Jan ISM
U.S. results: eBay
(Anshuman Daga)
*****
EUROPEAN FUTURES MUTED AS CENTRAL BANK BONANZA LOOMS (0722 GMT)
European shares are set for a muted start to Wednesday, though the mood permeating markets is anything but ahead of the outcome of the Fed's two-day meeting later on, euro zone inflation data and more earnings.
EuroSTOXX50 index futures are ticking up a tiny 0.05%, ahead of a day that could see the world's largest economy begin hinting at an end to interest rate hikes.
The Fed's meeting will precede decisions from the European Central Bank and the Bank of England - both due on Thursday.
Euro zone inflation data is expected to be a market-mover today, due for release at 1000 GMT, and earnings are also continuing to pour in. Spain's BBVA said its fourth quarter net profit rose 17.6% from the same quarter in 2021 while Swiss drugmaker Novartis predicted that core operating income would grow in a "mid single digit" percentage range in 2023. In other corporate news, higher global raw material and logistics costs have pushed German automaker BMW to raise suggested retail prices for some models sold in China.
Veteran Hollywood producer Peter Chernin and French TV production group Banijay's parent
have expressed interest in UK broadcaster ITV's Studios, the maker of hit show "Love Island",
sources familiar with the matter told Reuters.
(Lucy Raitano)
*****
