Europe close: Stocks mixed ahead of Fed announcement
By Alexander Bueso
Date: Wednesday 14 Dec 2022
(Sharecast News) - European stocks drifted lower for the most part on Wednesday as investor attention turned to the US Federal Reserve interest rate announcement later in the day.
The Stoxx 600 edged down 0.02% to 442.51 with nearly all major bourses following suit. Spain's Ibex 35 was the main exception, adding 0.40% to 8,360.60.
The Fed was expected to raise rates by 50 basis points.
Global markets rallied on Tuesday after the latest U.S. inflation report showed that consumer prices rose less than expected in November, signalling that inflationary pressures could be starting to ease.
In economic news, UK inflation eased to 10.7% last month, official figures showed on Wednesday, as transport costs fell back.
The consumer prices index rose by 10.7% in the 12 months to November, down on October's 41-year high of 11.1% and below consensus expectations of 10.9%.
However, industrial production fell sharply across the Eurozone in October, official data showed on Wednesday.
According to Eurostat, the European Union's statistical office, seasonally-adjusted industrial production fell by 2.0% in October, compared to September's downwardly-revised uptick of 0.8%. Consensus had been for a 1.5% contraction.
In the wider bloc, industrial production fell by 1.9%, reversing September's 0.7% increase.
In equity markets, holiday giant TUI slumped as it said it would raise cash to repay a Covid support loan even as it reported a return to annual profits and said it expected underlying earnings to increase significantly in 2023, despite market uncertainty.
Shares in Colruyt fell 15% as the Belgian supermarket chain posted a fall in profits.
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