By Carla Mozee and Sara Sjolin, MarketWatch
German police raid Audi offices
European stocks logged modest gains Wednesday, helped by
advances for energy shares as oil prices were in recovery mode. The
results of the Dutch election and the Federal Reserve's policy
meeting also weighed on investors' minds.
The Stoxx Europe 600 index ended 0.4% higher at 375.10,
rebounding from a 0.3% loss on Tuesday.
The European oil-and-gas index moved up 1.1% as oil prices
gained ground after industry group American Petroleum Institute
late Tuesday reported a decline in U.S. crude supplies
(http://www.marketwatch.com/story/api-data-show-an-unexpected-decline-in-us-crude-supplies-sources-2017-03-14).
Oil prices slid earlier on Tuesday after a monthly OPEC report
showed an increase in U.S. and Saudi Arabian crude output
(http://www.marketwatch.com/story/oil-prices-rise-for-the-first-time-in-7-sessions-monthly-opec-report-ahead-2017-03-14)
in an already oversupplied global market
A decline in the dollar
(http://www.marketwatch.com/story/dollar-trades-in-narrow-band-ahead-of-crucial-day-for-currency-markets-2017-03-15)
also aided dollar-denominated oil prices. The pullback came before
the Federal Reserve policy decision, due at 6 p.m. London time, or
2 p.m. Eastern Time, followed by Yellen's press conference at 2:30
p.m. Investors have priced in expectations of a rate hike, but will
watch to see what Fed Chairwoman Janet Yellen will say about rates
moving forward and her assessment of U.S. and global growth.
The euro bought $1.0638, compared with $1.0605 late Tuesday in
New York.
Banks rose in anticipation of the Fed rate increase, with the
Stoxx Europe 600 Banks Index rising 0.9%. Higher rates mean banks
can charge more for their loans, which could help them improve
their margins.
Read:There's another land of opportunity in the reflation trade
-- Europe
(http://www.marketwatch.com/story/theres-another-land-of-opportunity-in-the-reflation-trade-europe-2017-03-02)
Dutch election: Late Wednesday or early Thursday the preliminary
results of the general election in the Netherlands will be
released, and investors are watching if Geert Wilders' far-right
Party for Freedom will make a strong showing.
Read:Who is the 'Dutch Trump' Geert Wilders, and why should
investors care?
(http://www.marketwatch.com/story/who-is-the-dutch-trump-geert-wilders-and-should-investors-be-worried-about-him-2017-03-10)
If "Wilders is crowned as the winner, even if he does not manage
to establish a government, his strong showing could add momentum to
the [presidential] campaign of the French far-right candidate,
Marine Le Pen," said Charalambos Pissouros, senior analyst at
IronFX, in a note.
A victory for Wilders's party "may cause the euro to give back
more of the gains it posted following the recent ECB meeting, and
in combination with a rate hike by the Fed, it could push
euro/dollar gradually lower for another test near the key 1.0500
territory," he said.
The Netherlands' AEX closed 0.3% higher at 511.66.
Indexes: Germany's DAX 30 index rose 0.2% to 12,009.87, while
France's CAC 40 ended 0.2% higher at 4,985.48.
The FTSE 100 rose 0.2% to 7,368.64
(http://www.marketwatch.com/story/ftse-100-advances-as-oil-mining-shares-rise-2017-03-15).
See:What's going on in Scotland, and what that means for the
pound
(http://www.marketwatch.com/story/pound-pushed-lower-as-scottish-referendum-worries-emerge-2017-02-27)
Movers: Zodiac Aerospace SA shares (ZC.FR) tumbled 16% after the
maker of aircraft seats late Tuesday warned that full-year
operating income would fall 10%
(http://www.marketwatch.com/story/zodiac-aero-warns-safran-may-review-bid-terms-2017-03-15).
French aerospace supplier Safran SA (SAF.FR) said it could review
terms of its proposed 8.5 billion euros ($9 billion) purchase of
Zodiac. Safran shares dropped 0.8%.
E.ON SE (EONGY) fell 3.5% after the German energy company's 2016
net loss widened to EUR8.45 billion
(http://www.marketwatch.com/story/eon-posts-biggest-ever-loss-on-uniper-spinoff-2017-03-15).
"The Uniper spinoff and the funding of nuclear-waste storage left
deep marks on our balance sheet," said E.ON Chief Executive
Johannes Teyssen in a statement.
H&M AB shares (HM-B.SK) dropped 5.1% as the Swedish fashion
retailer's first-quarter sales excluding value-added tax rose 8% to
46.99 billion krona ($5.25 billion)
(http://www.marketwatch.com/story/hm-first-quarter-sales-rise-8-2017-03-15),
below the 48.03 billion krona analysts had expected in a FactSet
survey.
Hikma Pharmaceuticals PLC (HIK.LN) (HIK.LN) leapt 8% after the
company raised its dividend
(http://www.marketwatch.com/story/hikma-pharma-profit-drops-39-dividend-raised-2017-03-15).
Profit in 2016 fell 39% after booking exceptional costs.
Meanwhile, German police raided the offices and homes of Audi AG
executives in two German cities
(http://www.marketwatch.com/story/police-raid-audi-offices-in-volkswagen-probe-2017-03-15)
in connection with a criminal investigation in the wake of
Volkswagen AG's (VOW.XE) diesel emissions-cheating scandal, Audi
said Wednesday. Audi shares (NSU.XE) erased an earlier loss and
closed 0.3% higher and Volkswagen dropped 0.8%.
Data:French inflation rose 1.2%
(http://www.marketwatch.com/story/french-inflation-confirmed-as-slowing-in-february-2017-03-15)
on the year in February, slowing from January's rate, statistics
agency Insee said.
The U.K. unemployment rate fell to 4.7%, the lowest rate since
1975
(http://www.marketwatch.com/story/uk-unemployment-hits-4-decade-low-2017-03-15).
Regular wages grew by 0.8%, adjusted for inflation, in the three
months through January, the slowest rate of growth since late
2014.
The figures arrived before Thursday's Bank of England policy
meeting.
(END) Dow Jones Newswires
March 15, 2017 14:06 ET (18:06 GMT)
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