European markets were choppy on Wednesday, with corporate earnings season in full swing and a European Central Bank meeting ahead.
The pan-European Stoxx 600 was down 0.4% by mid-afternoon, having bounced either side of the flatline throughout the trading session. Tech stocks fell 1.9% while retail stocks gained 1%.
The European blue chip index ended Tuesday’s session up 1.4%, hitting its highest level since Sept. 19.
Corporate earnings are a key driver of share price movement in Europe. Deutsche Bank, Barclays, Standard Chartered, Mercedes Benz, Heineken and Reckitt Benckiser all reported before the bell on Wednesday.
Investors are also looking ahead to Thursday’s European Central Bank meeting, at which it is widely expected to raise rates by 75 basis points; and for clues on its path towards quantitative tightening, as the EU heads for a likely recession.
U.S. stocks rallied Tuesday for a third straight day as soft economic data indicated the Fed may not need to be so aggressive with rate hikes, though stock futures were lower Wednesday morning after Alphabet earnings disappointed.
A slew of U.S. companies will report Wednesday, including Meta, Coca Cola and McDonalds, and data is due on weekly mortgage applications, wholesale inventories and new home sales.
Asia-Pacific markets were higher on Fed expectations and comments from the China Securities Regulatory Commission on creating a “regulated, transparent open, lively and resilient” market.
