European stock benchmark closes flat as traders await ECB
Europe’s main stock benchmark ended essentially unchanged Wednesday, as many investors avoided big bets before Thursday’s European Central Bank meeting, though a tide of earnings releases lifted and sank some stocks.
The Stoxx Europe 600 SXXP, -0.01% ended down less than 0.1% at 362.64 after darting in and out of positive territory throughout the session. On Tuesday, the pan-European benchmark pulled back from a two-month high, weighed by losses for commodity producers.
Markets are building “towards what could be another key ECB meeting on Thursday,” said Richard Perry, analyst at Hantec Markets, in a note.
“There is a split of opinion over whether the ECB will be ready to announce further easing measures…an issue further muddied by news that there has been slight improvement in bank lending in the eurozone recently,” Perry wrote.
France’s CAC 40 PX1, +0.46% finished higher by 0.5% at 4,695.10, while the U.K.’s FTSE 100 UKX, +0.05% edged up less than 0.1% to 6,348.42. Germany’s DAX 30 DAX, +0.89% closed up 0.9% at 10,238.10.
More from banking: Credit Suisse Group AG CSGN, -3.58% CS, -3.16% shares fell 3.6% after the Swiss bank said it plans to raise about 6 billion Swiss francs ($6.3 billion) in new capital, as it delivered disappointing third-quarter results. The move is part of an overhaul of the company planned by its new chief executive, Tidjane Thiam.
Movers and shakes: Fiat Chrysler Automobiles NV FCA, -5.27% shares closed down 5.3% after the European Commission decided that Fiat’s financing company benefited from “illegal” and selective tax advantages in Luxembourg. The EU’s competition commission made a similar ruling on Starbucks Corp. SBUX, -0.98% in the Netherlands.
The “precise amounts of tax to be recovered must now be determined by the Luxembourg and Dutch tax authorities” using official methodology, the commission said, but could reach 30 million euros ($34.05 million) in each case.
Pearson PLC PSON, -15.95% shares plunged 16, their biggest percentage drop ever, after the educational publisher cut its full-year forecast, in part following the disposal of PowerSchool, FT Group and The Economist Group. Pearson also warned of challenging market conditions.
Shares of Home Retail Group PLC HOME, -15.83% also tumbled 16%. The owner of electronics seller Argos and home-improvement retailer Homebase warned it expects full-year profit to be slightly below the bottom end of market expectations.
On the upside, ARM Holdings PLC ARM, +6.54% ARMH, +4.42% jumped 6.5% after the chip designer and Apple Inc. AAPL, +0.98% supplier reported a rise in third-quarter profit and revenue, bolstered by demand for a new chip used in smartphones and digital TVs.
Syngenta AG SYNN, +6.32% shares ended 6.3% higher following news that Chief Executive Mike Mack plans to leave the pesticide and seed maker. His departure will come months after the company fought off a roughly $45 billion takeover attempt by Monsanto Co. MON, +0.79%.
Source: MarketWatch
