Stoxx 600, FTSE, CAC, DAX, Fed rate cut

LONDON – European stocks ended lower on Wednesday, although some stocks were supported by earnings, as investors awaited the conclusion of the US Federal Reserve meeting.

Pan-European Stokes 600 The index closed 0.1% lower, with major indices and sectors mixed.

UK FTSE 100 index The Italian index closed trading up 0.6%. FTSE MIB indicator Spain advanced by 0.3% Ibex 35which has performed well recently, ended the session up 0.4%.

Meanwhile Germany Dax France’s index fell 0.6%. CAC 40 Decreased by 0.2%.

The big event for the markets is the Fed’s interest rate cut today, with a quarter-point cut widely seen as a done deal by traders. If the Federal Open Market Committee acts as expected, it will bring the federal funds rate to a range of 3.75%-4%.

Less certain is whether Chairman Jerome Powell will take a pessimistic tone in his comments after the meeting.

After this week’s potential cut, 84% of respondents see another cut in December, and 54% see a third cut in January. According to CNBC’s October Fed survey. Interest rates are expected to be cut by 100 basis points this year and next, bringing the federal funds rate down to 3.2% by the end of 2026.

Earnings are also dominating the market’s attention this week alphabet, dead platforms and Microsoft The report is scheduled to be released after the US close on Wednesday. Apple and Amazon publish results on Thursday.

In Europe and Germany Mercedes Benz group On Wednesday, it reported a 70% drop in third-quarter operating profit, citing charges related to thousands of job cuts as it seeks to save 5 billion euros ($5.81 billion) by 2027. Earnings before interest and taxes (EBIT) were 750 million euros for the quarter, down sharply from 2.5 billion euros in the same period last year.

The luxury automaker, like its European industry counterparts, faces a perfect storm of challenges as strong Chinese demand and rising expenses due to US tariffs take their toll. However, Mercedes-Benz Group shares ended Wednesday up 4.5%.

UPS The company’s shares closed down more than 1%, after the shares of the Swiss banking giant Recorded net profits It reached $2.5 billion during the third quarter, beating analysts’ expectations of $1.85 billion, as revenue of $12.76 billion also exceeded expectations.

Santander The bank achieved record nine-month profits, up 7.8% year-on-year, due to strong business performance and efficiencies, such as streamlining operations, reducing bad loans and credit risk, and increasing customers. Its shares closed up 4.1% on Wednesday.

The company’s revenue reached 15.3 billion euros in the third quarter, up 1% year-on-year but narrowly below analyst estimates, according to data compiled by LSEG. However, net operating income performed slightly higher at €8.99 billion, up 2% from the year-ago quarter. It stuck to its 2025 guidance of €62 billion in revenue.

However, Santander’s British subsidiary delayed its results after a court ruling on Friday ruled that it must disclose agent commissions on car finance transactions, as part of the fallout from the financial crisis. Car financing scandal.

Meanwhile, Deutsche Bank Shares rose nearly 5% after reporting better-than-expected net earnings of €1.56 billion in the third quarter, compared with the €1.34 billion expected by analysts, according to LSEG. This figure represents a quarterly increase of 7%. The German bank said all four of its businesses – corporate bank, investment bank, private bank and asset management – ​​are “making progress on their strategic plans”, putting them on track for this year. Its current guidance calls for revenues of around €32 billion.

Adidas shares fell more than 10% after confirming its preliminary results.

elsewhere, Nokia Shares fell 4.3% on Wednesday as investors reacted to news on Tuesday that the chip maker Nvidia Acquires $1 billion stake in Finnish network company, forming strategic partnership to develop next-generation 6G cellular technology.

Trade tensions between the United States and China appear to be easing ahead of President Donald Trump’s meeting with Chinese President Xi Jinping on Thursday. Trump said on Wednesday that he expects fentanyl-related tariffs on China to be reduced before the meeting.

— CNBC’s Sam Meredith, Steve Lessman and Sarah Main contributed to this market report.