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Europe stocks mixed as markets await Fed decision; H&M down 10%

News Team

European stocks were mixed Wednesday morning as global markets look ahead to the latest monetary policy decision from the U.S. Federal Reserve and digest corporate earnings.

The regional Stoxx 600 was flat at 11 a.m. London time, slipping from earlier gains. The index closed Tuesday at a two-year high. Sector moves were limited, with banks up 0.8%, as retail stocks fell 1.9%.

A flurry of company results were released before the open, from pharma firms Novo Nordisk and Novartis, bank Santander, and retailer H&M.

Novo Nordisk shares were up more than 3% in early trade before trimming gains, after the Danish company beat expectations amid soaring demand for weight loss drug Wegovy and diabetes drug Ozempic.

H&M meanwhile plunged 10% as it made a surprise announcement of a new CEO and missed an operating profit forecast.

The Fed funds futures market has priced in a nearly 98% probability that the central bank will leave rates unchanged this month, according to the CME FedWatch tool.

Investors will be looking for clues on shifts in the central bank’s policy stance in its post-meeting statement and in Fed Chair Jerome Powell’s remarks.

Asia-Pacific markets fell ahead of the rate decision from the Fed, and as investors assessed a slew of economic data from across the region, including China and Australia.

Source: https://www.cnbc.com/2024/01/31/european-markets-live-updates-stocks-news-data-fed.html