European shares flat ahead of Fed meeting

European shares remained flat on Tuesday, with the pan-European STOXX 600 index edging up 0.1 per cent to 512.44 points by 08:30 GMT as investors awaited the Federal Reserve’s monetary policy meeting and key eurozone inflation data.

Gains in technology and oil stocks provided support, as the technology sector rose 0.1 per cent, with earnings from Microsoft and AMD expected later in the day.

Despite recent pressure on tech shares following disappointing results from Tesla and Alphabet, strong earnings could boost sentiment if AI’s revenue impact is confirmed, according to Swissquote Bank analyst Ipek Ozkardeskaya.

Investors anticipate a potential rate cut announcement from the Fed in September, while eurozone GDP and consumer confidence data are due later.

German data showed a surprising 0.1 per cent economic contraction in the second quarter, causing the DAX index to dip 0.2 per cent.

Diageo’s shares dropped 10 per cent after missing profit expectations, dragging the STOXX 600 lower.

Meanwhile, BP rose 2.1 per cent on strong earnings and an increased dividend, and Standard Chartered jumped 5.7 per cent after announcing a $1.5 billion share buyback. St. James’s Place soared 20.6 per cent, with plans to cut costs significantly.

Attribution: Reuters