European shares clash as earnings turmoil and Fed decision


European shares struggled for gains on Wednesday, as investors halted a flood of earnings from banks such as Barclays PLC and Deutsche Bank AG, and later awaited the Federal Reserve’s announcement.

Stoxx Europe 600 Index SXXP,
+ 0.07%
After losing 0.4% on Tuesday, it slipped 0.3% to close at 366.94. German DAX DAX,
-0.13%
And the FTSE 100 Index UKX,
+ 0.30%
French CAC 40 PX1, while fell about 0.2%
+ 0.66%
Increased by well-received results from the heavyweight Schneider Electric SE increased by 0.3%.

But the gains were hard to come by as the company’s results globally have confirmed the difficult climate caused by the epidemic. 10-year German bonds yield at TMBMKDE-10Y,
-0.507%
On Wednesday, minus 0.5%, a level not seen in two months. Yield at 10-year gilt TMBKGBG-10Y,
0.110%
The lowest since March hit -1.33%.

US stocks fell on Tuesday following the results of several large companies, including 3M MMM.
-4.84%
And McDonald’s MCD,
-2.48%
Disappointed in a major week for corporate earnings. Nasdaq-100 Futures NQ00,
+ 0.42%
Later pointed to the boom, but the Dow YM00,
0.05%
And the S&P 500 ES00,
+ 0.16%
The futures were flat.

Investors are awaiting the outcome of the two-day Federal Reserve meeting – a decision that will not come until after European markets close. Although no major policy changes are expected, Fed Chairman Jerome Powell hopes to maintain the dovish status of the central bank. Also, progress on another coronavirus support package outside the US is being closely monitored.

“For all the optimism about a new US stimulus program, the growing expectations of a vaccine, and the possibility of monetary policy being kept exceptionally loose by central banks, the resurgence of coronovirus cases that are beginning to report worldwide, This is indicative of the realization that in a note to customers, VC-sized recovery expectations are beginning to look like pie in the sky, ”said CMC Market Chief Market Analyst Michael Hewson.

According to the New York Times report, plateaus may begin in some of the most difficult US states, with some 21 considered hot spots. As a possible second wave of the virus is underway in parts of Asia and Europe, there is an outbreak in parts of Spain and Belgium. Britain over the weekend recommended against all necessary travel to Spain, overthrowing the struggling travel industry.

Several large banks reported the results on Wednesday, with the economic downturn from Coronavirus forcing those institutions to book major fees.

Barclays plc shares of BARC,

Bhabha Atomic Research Center,
-3.63%
Protex profit fell 1.7% in the first half of 2020 after reporting it fell 1.7% after the lender booked a £ 3.74 billion ($ 4.8 billion) credit loss fee. Barclays also warned of a challenging second half.

Shares of Banco Santner SA San,
+ 0.83%
San,
-3.44%
The loss fell by more than 4% after the Spanish lender reported surprisingly large losses in the second quarter, a 12.6 billion euro ($ 14.76 billion) loss stemming from the epidemic’s economic hit.

But the shares of Deutsche Bank AG DB,
-1.04%
DBK,
-2.42%
1% rose. The German bank reported a loss in the second quarter, but higher revenue on a strong performance by its investment bank unit, although bad-lending provisions reached an all-time high in more than a decade.

Schneider Electric SE shares climbed 3% after French energy-management group SU,
+ 4.58%
The first half reported a decline in net profit, but has re-established full-year targets and its share buyback program.

Tullo Oil Plc TLW,
-4.50%
Shares fell 5% after the UK oil producer said it expected to report lower revenue between $ 1.4 billion and $ 1.7 billion and predict pretax defects.

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