European Stocks Falter Amid Earnings and Fed Rate Decision
European shares closed lower on Wednesday, halting a streak of significant gains. Investors focused on corporate earnings and the forthcoming U.S. Federal Reserve rate decision. Sectoral declines were led by retail and healthcare. Additionally, trade talks and economic developments in Germany contributed to market sentiment.
European stocks ended their trading day on a downward note on Wednesday, interrupting weeks of bullish momentum. This came as investors turned their attention towards an array of corporate earnings reports and awaited the U.S. Federal Reserve's crucial rate decision expected later in the day.
The pan-European STOXX 600 index saw a decline of 0.5%, with retail stocks falling precipitously by 2% following disappointing eurozone retail sales data for March. The healthcare sector wasn't spared, as shares from prominent drugmakers like AstraZeneca, GSK, and Sanofi all slipped after a significant personnel announcement from the U.S. FDA.
Tensions loomed large as traders anticipated the Fed's rate decision, amidst a backdrop of geopolitical and economic developments, including U.S.-China trade talks. On the corporate front, firms like Novo Nordisk and BMW posted better-than-expected quarterly results, while Ambu and Tomra struggled amid below-expectation earnings.
(With inputs from agencies.)
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