A previous version of this report gave the wrong date for the Bank of England policy meeting. The story has been corrected.
European stocks struggled on Wednesday, alongside U.S. equity futures, as investors awaited the outcome of the Federal Open Market Committee meeting.
Some chip stocks saw pressure after a Samsung Electronics executive warned of problems with global shortages.
The Stoxx Europe 600 index
eased 0.1% after a 0.9% gain on Tuesday, the biggest one-day percentage gain since March 8. A loss would mark the first in three sessions. The German DAX
inched up 0.1% and the French CAC 40
eased 0.1%, while the FTSE 100
fell 0.3%. The euro
was steady, while the pound
was firmer against the dollar.
U.S. stock futures were mixed, with Nasdaq-100 futures
under pressure and Dow
and S&P 500 futures
flat. The Dow industrials
and S&P 500
ended lower on Tuesday, a day after posting records, while the Nasdaq Composite
managed a modest gain. Investors are expecting no changes in Fed policy, but will be paying close attention to its projections regarding the U.S. economy and interest rates.
Federal Reserve Chair Jerome Powell’s news conference will also be a highlight as pressure remains on the bond market. The yield on the 10-year Treasury
was up 2 basis points to 1.632%.
On Thursday, the Bank of England’s Monetary Policy Committee will announce its own policy decision. The central bank is expected to keep its key rate steady at 0.1% and maintain the ceiling of its continuing bond-buying program at £895 billion ($1.2 trillion). Gilt yields
hovered at 0.79%, but began the year at around 0.2%.
New car sales in the European Union fell 19% on an annual basis in February, as economic uncertainty and measures to stop the spread of COVID-19 weighed on demand, the European Automobile Manufacturers’ Association said.
shares were among the biggest gainers, up 4% after the German luxury-car maker said group pretax profit should be significantly higher than in 2020, as it forecast projected earnings before interest and taxes margin for the automotive unit to come in at between 6% and 8%.
Shares of STMicroelectronics
fell over 1%, and those of ASM International
dropped 0.6%. Chip-related companies tracked losses in Asia for companies such as Taiwan Semiconductor, which fell 1%, and Samsung Electronics, which dropped 0.6%.
Those losses came after a warning over chip shortages that have hit the global auto sector and could spread to technology.
“There’s a serious imbalance of supply and demand in the IT sector globally…It is hard to say the shortage issue has been solved 100%,” said Samsung’s co-chief executive officer Koh Dong-jin at a shareholder meeting, according to the Financial Times.