European stock markets closed with mixed signals. The Stoxx 600 remained practically flat after recovering the morning losses. Bank results marked differences between markets, while the rise in oil limited purchases ahead of the Federal Reserve's decision.
Energy and technology showed relatively better performance, while financials were among the lagging sectors due to the uneven reception of earnings reports. Among companies, Deutsche Bank rose by as much as 3.5% during the morning after exceeding quarterly profit forecasts, while Banco Santander lost more than 5% despite results in line with expectations.
By indices, the Ibex 35 lost around 1.4%, dropping below 18,900 points, while the Euro Stoxx 50 remained slightly positive. The Spanish benchmark lagged behind the rest of the region.
The Federal Reserve's decision is expected after the European close. Investors anticipated a pause after the September hike, but maintained the expectation of another increase in December. Attention focused on the message regarding inflation and the conditions for resuming rate hikes, rather than an immediate change in rates.
Investors also awaited the results of Microsoft and Alphabet, expected after the US close. The evolution of the cloud business and investment plans will provide new references to assess the profitability of the artificial intelligence rollout. The reports will arrive after two sessions of recovery for the main US indices.
At the European close, the S&P 500 and Nasdaq were up 0.2%, while the Dow Jones rose 0.4. The available reference reflected a waiting session ahead of those publications.
Sovereign yields moderated the rise recorded during the morning and stabilised ahead of the Fed's decision. The initial adjustment did not lead to a new session of intense selling: the German and US references returned to near their levels from Tuesday.
The 10-year German Bund yield stood at around 3.37%, rising 1 bp. In the United States, the 10-year US Treasury yield was at 5.02%, rising 2 bp.
Brent rose by around 2%, reaching 116.2 dollars per barrel. The Houthis claimed an attack on a Saudi refinery, rekindling concerns about supply after Tuesday's crude oil drop. Saudi authorities had not immediately confirmed the attack.
The euro registered little change against the dollar. The EUR/USD was around 1.115, slightly above the previous close, without straying from recent levels. The movement was contained ahead of the monetary decisions from the United States and the Eurozone.