Europe close: Stocks little changed ahead of FOMC rate decision
European stocks were little changed ahead of the Federal Reserve’s latest policy decision.
The Federal Open Market Committee releases its policy statement after European markets close. The US central bank is expected to keep interest rates at 0.25% and reiterate plans for an increase mid-2015. The Fed has maintained the benchmark rate near zero since the 2008 financial crisis.
In Europe, a report showed German consumer confidence rose more than expected.
GfK’s forward-looking sentiment index for Germany increased to 9.3 in February from 9 in January, beating the 9.1 that was estimated.
“German consumers, just like most around the world, are receiving a massive boost to real spending power from cheap oil. As a result, consumer confidence is climbing to new highs,” said Berenberg analyst Christian Schulz.
“We expect German households’ consumption to remain a pillar of growth in Germany and the Eurozone in 2015.”
Elsewhere in Europe, Greek stocks declined for a third day, led by banks, amid fears the newly-appointed Syriza-led coalition will challenge austerity measures imposed in the Mediterranean nation.
Holger Schmieding, analyst at Berenberg said: “Greece matters. Europe would love to keep Greece in the euro and on the path to growth. Europe is happy to fund the process, but only if Greece keeps laying the foundations for sustained growth. Tough love means that help is conditional.”
ARM and Imagination rally on Apple results
Chip designers ARM Holdings and Imagination Technologies Group gained after Apple reported better-than-expected quarterly profit on the back of strong demand for its iPhones.
Nordea advanced after raising its 2014 dividend by 44% and reporting a rise in quarterly net income.
Electrolux rose after Europe’s biggest appliances maker posted a 20% gain in fourth-quarter operating profit.
Anglo American was higher after reporting a rise in coal and iron-ore output in the fourth quarter.
Johnson Matthey declined after saying third-quarter profit growth slowed and warned of the impact from depressed oil prices.
The euro fell 0.33% to $1.1344.
Brent crude dropped 1.2% to $49.01 per barrel.