European Shares Dip Ahead of Fed Meeting: Banks and Insurance Stocks Lead Drop
European shares fell as investors awaited the U.S. Federal Reserve's policy decision. The STOXX 600 declined due to drops in banks and insurance stocks. Schindler shares slid after a discounted sell-off, while L'Oreal fell following a downgrade. Ferrari shares rose with a new positive coverage rating.
European stock markets saw a decline on Tuesday, driven by decreases in rate-sensitive banking and insurance sectors. Investors grew cautious as they awaited the Federal Reserve's monetary policy announcement, expected to involve a significant interest rate decision.
The STOXX 600 index fell by 0.15%, with banks and insurance stocks experiencing a downturn of around 1% each. Anticipation is high for the Fed's meeting, as markets speculate on a potential 25-basis-point cut in interest rates, marking the first such move this year amid recent signs of cooling in the U.S. job market.
Among notable movements, Schindler's shares dropped 1.7% following a discounted sale by an investor. L'Oreal's stock faced a 2% decline after Jefferies downgraded its rating to 'Underperform'. Conversely, Ferrari saw a 2.6% increase as Berenberg initiated coverage with a 'Buy' recommendation, citing the brand's strong market position.
(With inputs from agencies.)
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