Europe midday: Stocks little changed as focus shifts to Fed

European stocks wavered in a tight range on Wednesday as investors sifted through earnings ahead of the Federal Reserve’s rate announcement.

At midday, the benchmark Stoxx Europe 600 index was flat, Germany’s DAX was up 0.2% and France’s CAC 40 was 0.1% higher.

Stocks in Greece were sharply lower as its negotiations with international creditors stalled over demands for extra austerity measures. The Eurogroup said on Tuesday that finance ministers for the Eurozone would not be meeting on Thursday as they need more time to discuss reforms.

At the same time, oil prices advanced, breaching the $45 market for the first time since November after data from the American Petroleum Institute late on Tuesday revealed US crude inventories fell by 1.1m barrels last week compared with an expected build of around 0.8m.

West Texas Intermediate was up 2% to $44.94 a barrel and Brent crude was 2.3% firmer at $46.78.

“Corporate earnings reports continue to flow yet it’s all a little restrained in risk assets this morning as traders stand by for the latest FOMC rate decision,” said Brenda Kelly, head analyst at London Capital Group.

“If recent weakness in the greenback is to be believed and borne out, a more dovish Fed is the likely catalyst as both macro data and corporate earnings in the US provide mixed messages on the state of the economy. The dollar index is making its way back towards the 94.00 support level – any indication that this will break with conviction in the aftermath of the statement could change sentiment towards stocks and may well give equity indices a boost.”

After the close on Tuesday, shares in US technology giant Apple fell sharply after its first-quarter results revealed the first drop in revenue in 13 years as iPhone sales fell for the first time ever.

In European corporate news, Barclays was a high riser. Although it posted a decline in first-quarter profit amid weakness in the investment banking division, the numbers were better than expected.

Delhaize was also in the black after the Belgian food retailer said net profit in the first quarter rose 291%.

Banco Santander pushed up after its first-quarter net profit and net interest income came in pretty much as expected, while oil giant Total gained after its quarterly profit beat analysts’ estimates.

Adidas rallied after the German sports retailer lifted its full-year profit guidance for the second time in less than three months.

On the macroeconomic front, the latest findings by market research group GfK showed German consumer sentiment was set to improve markedly in May from April.

GfK said the overall index was forecasting 9.7 points for May compared to 9.4 points the month before, with growth for both economic and income expectations as well as propensity to buy.

Economists had been expecting the index to be unchanged at 9.4.

The Fed rate announcement is due after the European close at 1900 BST.