(Sharecast News) – European shares opened lower on Wednesday as investor focus turned to the start of the US Federal Reserve’s two-day policy meeting for any clues on the future path of interest rates.
The pan-European Stoxx 600 index was down 0.16% with all major regional bourses lower with the exception of Spain’s Ibex, with was up 0.12%.
Fed policymakers are widely expected to resume lifting rates, with a 25 basis point increase tipped as the central bank tries to quell inflation.
In equity news, the UK banking world was rocked when NatWest chief Alison Rose quit with immediate effect after admitting she leaked details of hard-right former politician Nigel Farage’s relationship with the institution to a journalist. Shares in the bank fell on the news.
Meanwhile Lloyds Bank stock was also lower despite posting massive interim profits and raised its net interest margin guidance while hard-pressed savers were still looking for a decent return on their deposits.
“Despite this more positive outlook the shares have slipped back after profits fell short of expectations. This miss on profits appears to be down to an increase in provisions for non-performing loans, which came in at £419m, and a fall in Q2 NIM to 3.14% down from 3.22% in Q1,” said Michael Hewson, chief market analyst at CMC Markets.
Shares in Rolls-Royce surged as the aircraft engine maker raised its full-year operating profit forecast after delivering a stronger-than-expected first half, driven by its civil and defence units.
Meal delivery company Just Eat Takeaway.com gained as it swung to a profit at the half-year and said chief financial officer Brent Wissink would step down next May “to pursue other opportunities”.
Reporting by Frank Prenesti for Sharecast.com