Europe open: Markets open flat as caution reigns
European stocks opened flat on Wednesday morning following two days of losses, with markets rangebound amid ongoing macro uncertainty.
"Caution is reigning on financial markets amid growing expectations that borrowing costs might come down slower in the US, the world’s largest economy, while political uncertainty and the threat of conflict spreading in the Middle East is also keeping investors a little more wary," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
The Stoxx 600 was up just 0.06% at 520.78 in early deals, with small gains in Milan and Madrid offset by flat starts in London and Frankfurt and mild losses in Paris. The pan-European index has fallen since hitting a four-week high of 524.99 on Friday – its highest close since reaching a record of 528.08 on 27 September.
In the absence of any major economic data, speeches from the heads of Bank of England and European Central Bank are likely to be closely watched at the annual meetings of the IMF and World Bank taking place in Washington DC. Both Andrew Bailey and Christine Lagarde due to speak, along with policymakers from the Fed.
Comments in recent days from several Fed members have tempered expectations of continued aggressive monetary easing in the US, as policymakers call for more gradual reductions in interest rates due to the progress made in the fight against inflation.
Lloyds gains after Q3 beat
Lloyds rose strongly in London after beating consensus forecasts with its third-quarter earnings, as the banking group reiterated guidance for the full year. Statutory profit before tax totalled £1.82bn in the three months to 30 September, down 2% on last year but well ahead of the £1.6bn expected by analysts due to lower-than-expected impairment charges.
Danish Brewer Carlsberg edged higher despite the news that its £3.3bn takeover of Britvic is being formally investigated by UK competition regulators.
AkzoNobel, the Dutch maker of paints, coatings, and chemicals, fell sharply after underwhelming with third-quarter results as organic sales rose just 1% and revenues fell 3%.
UK-listed precious metals miners Fresnillo and Hochschild were both in demand after reiterating full-year production guidance following solid third-quarter output performances.