Europe open: Shares mixed as investors stay cautious ahead of Fed minutes

by | Nov 21, 2023

(Sharecast News) – European shares opened mixed on Tuesday as investors maintained a cautious stance and looked for more indications from central bankers on future interest rate moves.
The pan-European Stoxx 600 index was up 0.05% at 456.47 in early deals with Germany’s DAX also higher, which Frances CAC-40 was down by 0.09%.

Investors are awaiting minutes from the US Federal Reserve’s last policy meeting later today, with some economists expecting rates to be held steady next month with a view to some cuts next summer.

In the UK, public borrowing came in higher for the first nine months of the year, but lower than forecast, a day before finance minister Jeremy Hunt unveils his autumn budget, amid calls for tax cuts.

“The latest government borrowing figures won’t pop the balloon of Jeremy Hunt’s expected tax-cut party on Wednesday, but it does squeeze his wiggle room a bit. Public sector net borrowing came in at £14.9 billion, higher than the OBR forecast by £1.2 billion,” said Hargreaves Lansdown analyst Susannah Streeter.

“However, given that borrowing during the fiscal year to date is still almost £17 billion, he will feel he has the space to offer sweeteners. Although tax receipts are still flooding in at higher levels, as more people are nudged into higher bands, government spending overshot expectations in October.”

“Debt interest payments were more painful than expected, coming in at a whopping £7.5 billion. This is the highest interest payable in any October since monthly records began.”

In equity news, Swiss hearing aid maker Sonova jumped despite trimming annual forecasts on Monday.

Reporting by Frank Prenesti for

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