European Stocks Rise Ahead of ECB Rates Decision
European stocks rose on Wednesday as investors awaited the European Central Bank’s (ECB) decision on interest rates. The Stoxx Europe 600 Index gained 0.3%, while the Euro Stoxx 50 Index rose 0.4%. The German DAX 30 Index rose 0.2%, while the French CAC 40 Index gained 0.3%.
Barclays Sinks on Profit Warning
Barclays Plc shares dropped as much as 8.2% after the bank warned that its first-half profit would be lower than expected. The bank said that it was facing higher costs and lower income due to the pandemic. Barclays also said that it was facing a “challenging” operating environment.
ECB to Keep Rates Unchanged
The ECB is expected to keep its key interest rate unchanged at its meeting on Wednesday. The ECB is also expected to maintain its asset purchase program at its current level. The ECB is expected to keep its policy stance unchanged as it monitors the economic recovery from the pandemic.
Oil Prices Rise
Oil prices rose on Wednesday as investors awaited the outcome of the OPEC+ meeting. The OPEC+ meeting is expected to result in an extension of the current production cuts. Brent crude futures rose 0.5% to $45.20 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 0.4% to $42.80 a barrel.
European Banks Rise
European banks rose on Wednesday as investors awaited the ECB’s decision on interest rates. Shares of Deutsche Bank AG rose 1.2%, while shares of UBS Group AG rose 0.9%. Shares of Credit Suisse Group AG rose 0.7%, while shares of Banco Santander SA rose 0.6%.
European Currencies Mixed
The euro was little changed against the U.S. dollar on Wednesday. The euro was trading at 1.1719 against the dollar. The British pound was also little changed against the dollar, trading at 1.3169. The Swiss franc was trading at 0.9073 against the dollar.
European Bond Yields Rise
European bond yields rose on Wednesday as investors awaited the ECB’s decision on interest rates. The yield on the German 10-year bond rose to -0.37%, while the yield on the French 10-year bond rose to -0.12%. The yield on the Italian 10-year bond rose to 0.90%.
Outlook
European stocks are likely to remain volatile in the near term as investors await the outcome of the ECB’s decision on interest rates. Oil prices are also likely to remain volatile as investors await the outcome of the OPEC+ meeting. European bond yields are likely to remain range-bound in the near term.