European Equities Turn in Mixed Performance amid Mixed Earnings Results

By Investors Hub

European shares are turned in a mixed performance on Wednesday as investors digest mixed earnings and economic releases and look ahead to the outcome of the Federal Reserve’s latest two-day monetary policy meeting concluding later in the day.

Some economists expect the central bank to raise its economic assessment at Fed Chair Janet Yellen’s final meeting.

In economic news, Eurozone inflation slowed as expected in January, flash data from Eurostat revealed. Inflation came in at 1.3 percent, in line with expectations, but lower than December’s 1.4 percent.

The Eurozone jobless rate held steady at an almost 9-year low of 8.7 percent in December, while Germany’s unemployment extended its decline at the start of the year.

German retail sales fell 1.9 percent year-on-year in December, in contrast to November’s 4.3 percent increase. French consumer inflation increased to 1.4 percent in January on higher services and energy prices.

While the U.K.’s FTSE 100 Index has edged down by 0.1 percent, the German DAX Index is up by 0.2 percent and the French CAC 40 Index is up by 0.4 percent.

Home appliance manufacturer Electrolux has soared after announcing plans to close its St. Cloud facility.

Dairy Crest Group shares have also jumped after the British dairy products company kept its full-year outlook after reporting revenue for the nine months ended December 31, 2017 that was well ahead of the previous year.

Meanwhile, H&M Group shares have tumbled after the Swedish fashion giant reported a drop in fourth quarter sales and profits following a bout of heavy price cutting and reduced footfall to its stores.

Telecom equipment maker Ericsson has also come under pressure after reporting a wider than expected loss for the fourth quarter.

Lonza has moved lower after the Swiss drug ingredients maker issued a cautious outlook for 2018 after posting strong organic sales growth and higher margins for fiscal 2017.

Embattled outsourcing group Capita has plummeted after warning on profits, announcing a rights issue and suspending dividend.