European Stocks Fall Following Greek Selloff
Markets Cautious Ahead of U.S. Federal Reserve Statement
European stocks fell Wednesday, hit by a big selloff in Greece and caution ahead of the latest message on the path of monetary policy due from the U.S. Federal Reserve statement later in the day.
The Stoxx Europe 600 index was 0.1% lower midway through the session, after an upbeat tone after a strong finish to Tuesday’s U.S. session faded.
Germany’s DAX was 0.2% lower, France’s CAC-40 lost 0.5%, while the U.K.’s FTSE 100 fell 0.3%. U.S. stock futures indicated a 0.1% opening gain for the S&P 500. Changes in futures aren’t necessarily reflected in market moves after the opening bell.
In Europe, Greek banks were the heaviest fallers, but the weakness also spread to the wider eurozone banking sector. Elsewhere, some firms were lifted by upbeat earnings reports, with Electrolux AB and Nordea Bank AB climbing.
In currency markets, the euro was steady against the dollar at $1.1360. The currency had recovered from 11-year lows on Tuesday amid broad weakness for the buck.
After some patchy economic data, “markets seem wary that Wednesday’s [Fed] statement could bring a dovish shift in message,” said currency strategists at BNP Paribas . Still, the Fed is likely to provide a renewed boost for the dollar by sticking to its message that rates will rise this year, they said.
In commodities markets, Brent crude oil was down 0.8% at $49.22 a barrel, and gold was 0.3% lower at $1,288.10 an ounce.
Source: wsj – European Stocks Fall Following Greek Selloff
