Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European Stocks Edge Largely Lower; BMW, Volkswagen Help DAX Outperform

Stock Markets Mar 17, 2021 09:08
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse

Investing.com - European stock markets edged largely lower Wednesday ahead of the conclusion of the Federal Reserve’s two-day policy meeting, with BMW and Volkswagen (DE:VOWG_p) helping the German market outperform. 

At 4:10 AM ET (0910 GMT), the DAX in Germany traded 0.1% higher, but the CAC 40 in France fell 0.1% and the U.K.'s FTSE index dropped 0.4%.

BMW (DE:BMWG) stock soared 5%, climbing to its highest level in a year, after the German automaker said it expects a significant year-on-year increase in pretax profit in 2021 as it forecast a strong performance in all of its segments.

Staying in the sector, Volkswagen (DE:VOWG) stock climbed over 10% after the company said it expects its 2021 deliveries, sales and earnings to come in above the previous year's level, as it announced the start of its new strategy to deliver more than 450,000 electrified cars this year.

Away from this, the tone in Europe has been more subdued with France entering a third wave of the Covid-19 pandemic, French Prime Minister Jean Castex told his country’s parliament Tuesday.

This followed the Robert Koch Institute warning earlier Tuesday that coronavirus infections are spreading exponentially in Germany, up 20% in the last week.

France and Italy said on Tuesday they will resume distribution of the AstraZeneca (NASDAQ:AZN) vaccine if the European Medicines Agency says again that the vaccine is safe for use. The EMA has already approved the drug once and repeated at a press conference on Tuesday that the benefits of the vaccine outweigh any risks. Germany and others have yet to reverse their suspensions. 

Away from Europe, the Federal Reserve concludes its latest two-day meeting later Wednesday and is scheduled to release new economic and interest rate forecasts. With the Biden administration’s $1.9 trillion stimulus package yet to have its impact, the market is beginning to anticipate interest rates rising sooner than in 2024, as the central bank’s current guidance suggests.

Other central bank meetings are also scheduled this week, with the Bank of England on Thursday and the Bank of Japan's two-day get together concluding Friday.

Oil prices drifted lower Wednesday, selling off despite the surprise fall in U.S. crude inventories of 1 million barrels last week, as detailed by the American Petroleum Institute.

U.S. stockpiles had been rising as February’s unexpected cold snap in the southern states had knocked out a significant portion of the country's refining capacity.

Official data from the Energy Information Administration are due later in the session, and will be studied carefully for confirmation of this crude drawdown.

U.S. crude futures traded 0.2% lower at $64.66 a barrel, while the Brent contract fell 0.4% to $68.11.

Elsewhere, gold futures rose 0.1% to $1,732.95/oz, while EUR/USD traded 0.1% higher at 1.1905.

 

European Stocks Edge Largely Lower; BMW, Volkswagen Help DAX Outperform
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email