European Stocks Up In Positive Territory As Investors Await Fed Rate Decision

(RTTNews) - European stocks are up in positive territory on Wednesday amid speculation the Federal Reserve, which is expected to raise interest rates by 25 basis points later in the day, might soon signal a pause in its tightening cycle.

Investors are tracking quarterly earnings announcements for some direction. Materials stocks are faring well, while bank and energy stocks are weak.

The pan European Stoxx 600 is up nearly 0.5%. The U.K.'s FTSE 100, which has pared a good portion of its early gains, is up 0.26%. Germany's DAX is rising 0.84% and France's CAC 40 is climbing 0.71%, while Switzerland's SMI is up 0.47%.

In the UK market, Pearson is surging nearly 8%. Burberry Group, Hikma Pharmaceuticals, Intertek, Rentokil Initial, Anglo American Plc, Bunzl, Diageo, Severn Trent, Halma, Prudential, Rolls-Royce Holdings, Spirax-Sarco Engineering, Scottish Mortgage, Melrose Industries and TUI are up 1 to 3%.

Lloyds Banking is down nearly 4%. IAG is lower by about 2.6% and Polymetal International is down 2.1%. Royal Mail, Croda International, Kingfisher, BP, Royal Dutch Shell, Barclays Group and Barratt Developments are down 1.2 to 2%.

In economic news, data from Eurostat showed the seasonally-adjusted unemployment rate in the Euro Area decreased slightly to 6.5% in March 2023, marking the lowest rate on record and coming in just below market expectations of 6.6%. This latest figure represented a drop from last year's rate of 6.8%.

In Paris, Kering, Eurofins Scientific, LVMH, Essilor, Hermes International, Capgemini, Dassault Systemes, Schneider Electric and Pernod Ricard are gaining 1 to 2%.

Bouygues is drifting down more than 4%. Vivendi, Renault and Teleperformance are down 1.2 to 1.6%.

Stellantis is lower by about 1.2% despite the company reporting a 14% rise in first-quarter revenues.

In the German market, Sartorius is climbing nearly 3.5%. Merck is up 2.7%, while Siemens, SAP, Siemens Healthineers, BASF, Munich RE, Hannover Rueck, Covestro and Puma are rising 1 to 1.6%.

Shares of Milan-headquartered UniCredit are up 3.6% after the lender reported a 56.5% jump in net revenue growth in its first quarter. The bank has also revised up its full-year guidance.