Investing.com – European stock markets were broadly lower on Wednesday, as shares in BNP Paribas tumbled amid fears of an imminent credit downgrade, while markets awaited the outcome of the Federal Reserve’s monetary policy meeting later in the day.
During European morning trade, the EURO STOXX 50 dropped 0.85%, France’s CAC 40 sank 0.95%, while Germany’s DAX 30 retreated 1%.
Shares in France’s largest retail lender BNP Paribas tumbled 5.7% amid speculation ratings agency Moody’s will downgrade the bank’s credit rating as soon as today.
Last week, Moody’s said it was extending its review of BNP, after downgrading fellow French lenders Societe Generale and Credit Agricole, which saw shares drop 2.3% and 2.9% respectively.
Shares of Europe’s largest airliner Deutsche Lufthansa dropped 4.2% after Deutsche Bank downgraded the stock to ‘sell’ from ‘hold’, citing poor earnings prospects.
On the upside, German business software maker SAP saw shares gain 2.1% after its U.S. rival Oracle reported better-than-expected fiscal first quarter earnings after Tuesday’s closing bell on Wall Street.
In London, the commodity-heavy FTSE 100 shed 0.45% as shares in raw material producers came under pressure after Rio Tinto’s chief executive said in an interview in the Financial Times that some of the company’s customers are requesting delays in metals shipments.
Rio Tinto shares declined 1.25%, rival BHP Billiton saw shares slump 1.1%, while copper producer Xstrata declined 1.5%.
Shares in oil producers were also lower, with British Petroleum falling 1.6%, Cairn Energy shares dropping 1.1% and Royal Dutch Shell down 1%.
Elsewhere, U.S. equity markets pointed to a modestly higher open ahead of the conclusion of the Fed’s two-day policy meeting later in the day.
Many market participants expect the Fed to opt for a move known as ‘Operation Twist’, a combination of buying and selling of shorter and longer term Treasury bonds in order the bend the yield curve.
The Dow Jones Industrial Average futures pointed to a gain of 0.2%, S&P 500 futures signaled a rise of 0.15%, while the Nasdaq 100 futures indicated a 0.35% gain.
Later in the day, the U.S. was also to publish industry data on existing home sales.
During European morning trade, the EURO STOXX 50 dropped 0.85%, France’s CAC 40 sank 0.95%, while Germany’s DAX 30 retreated 1%.
Shares in France’s largest retail lender BNP Paribas tumbled 5.7% amid speculation ratings agency Moody’s will downgrade the bank’s credit rating as soon as today.
Last week, Moody’s said it was extending its review of BNP, after downgrading fellow French lenders Societe Generale and Credit Agricole, which saw shares drop 2.3% and 2.9% respectively.
Shares of Europe’s largest airliner Deutsche Lufthansa dropped 4.2% after Deutsche Bank downgraded the stock to ‘sell’ from ‘hold’, citing poor earnings prospects.
On the upside, German business software maker SAP saw shares gain 2.1% after its U.S. rival Oracle reported better-than-expected fiscal first quarter earnings after Tuesday’s closing bell on Wall Street.
In London, the commodity-heavy FTSE 100 shed 0.45% as shares in raw material producers came under pressure after Rio Tinto’s chief executive said in an interview in the Financial Times that some of the company’s customers are requesting delays in metals shipments.
Rio Tinto shares declined 1.25%, rival BHP Billiton saw shares slump 1.1%, while copper producer Xstrata declined 1.5%.
Shares in oil producers were also lower, with British Petroleum falling 1.6%, Cairn Energy shares dropping 1.1% and Royal Dutch Shell down 1%.
Elsewhere, U.S. equity markets pointed to a modestly higher open ahead of the conclusion of the Fed’s two-day policy meeting later in the day.
Many market participants expect the Fed to opt for a move known as ‘Operation Twist’, a combination of buying and selling of shorter and longer term Treasury bonds in order the bend the yield curve.
The Dow Jones Industrial Average futures pointed to a gain of 0.2%, S&P 500 futures signaled a rise of 0.15%, while the Nasdaq 100 futures indicated a 0.35% gain.
Later in the day, the U.S. was also to publish industry data on existing home sales.