European markets in real time: stocks, news, data and Fed meeting

European markets were flat on Tuesday as global investors await the start of the U.S. Federal Reserve's two-day policy meeting.

 

The pan-European Stoxx 600 index was down 0.01% in early afternoon trading, while sectors traded in mixed territory. Shares of automakers were up 1%, while utilities were down 0.6%.

 

U.S. stocks opened mixed ahead of the Federal Reserve meeting in Washington. Recent inflation reports may prompt the Fed to signal that interest rates will remain higher for longer than expected. Fed funds futures are currently forecasting a 99% probability that the Fed will leave benchmark interest rates unchanged this week, according to the CME FedWatch tool.

 

Meanwhile, it was a dramatic night for Asia-Pacific markets after investors priced in the latest central bank monetary policy decisions from the Bank of Japan and the Reserve Bank of Australia.

 

The Bank of Japan officially ended its negative interest rate policy at its March meeting, raising interest rates for the first time in 17 years and raising the benchmark interest rate from -0.1% to a range of 0% to 0.1%. The bank also lifted its yield curve control policy, a historic change in policy. Markets in the Asia-Pacific region were mostly down on Tuesday following the move.

 

U.S. stocks opened mixed on Tuesday as Wall Street awaited the Federal Reserve's two-day meeting.

The S&P 500 Index fell 0.3% and the Nasdaq Composite lost 0.8%, while the Dow Jones Industrial Average added 0.1%.

 

- Karen Gilchrist

Shares of consumer goods giant Unilever rose Tuesday after the company announced plans to split its ice cream division, which includes Ben & Jerry's and Magnum, as part of a restructuring that will affect 7,500 jobs.

Unilever shares rose 5.6% immediately after the news was released, before paring back the gains slightly, rising 2.9% in the afternoon.

On the other hand, Reckitt Benckiser shares fell 3.9%, cutting gains from the previous session, after a lawsuit was filed in the U.S. over Enfamil infant formula.

 

- Karen Gilchrist

Atos shares fell more than 18% and were suspended Tuesday morning after the French IT company announced that Airbus had ended talks to buy its cybersecurity business.

As a result, Atos is postponing the publication of its 2023 earnings to "evaluate strategic options," the company said in an update to the market.

"Atos is analyzing the current situation and is actively evaluating strategic alternatives that will take into account the sovereign imperatives of the French state," the statement said.

 

- Elliott Smith

While investors are focusing on artificial intelligence companies, Berenberg strategists see one sector as a relatively bargain.

The investment bank noted that investors in the sector outperformed the market by an average of 108% - or more than doubled their money - when they invested on three occasions in the past when valuations were as low as current levels.