European markets pivoted from the previous session’s negative sentiment on Wednesday as global investors brace themselves for the U.S. Federal Reserve’s latest monetary policy decision.
The pan-European Stoxx 600 index was up 0.4% at 10:00 a.m. London time, with most sectors in the green. The benchmark index fell 1.2% yesterday to its lowest level in nearly a month, according to Reuters data.
UniCredit climbed 5.2% after it smashed analyst forecasts and raised its guidance for the year.
“I think it’s a combination of a positive macro, probably better than we expected, and the fact that our continued transformation is probably boosting our results, and our lines of defense are keeping our cost of risk low,” CEO Andrea Orcel told CNBC.
The European banking sector rose 0.4% despite continued U.S. regional banking jitters. Investors also digested results from BNP Paribas, the euro zone’s biggest bank, which was up 0.5% after reporting a doubling of profit in the first quarter.
Oil and gas stocks extended Tuesday’s sharp losses as oil prices fell further, declining another 1.1%. Food and beverage stocks led gains, up 1%, as mining stocks gained 0.7%.
Asia-Pacific markets traded largely lower, while early-hours U.S. stock futures were higher.
Most economists surveyed by Reuters said they expect the Fed to hike rates by 25 basis points, with the remainder forecasting a pause.
