By Tommy Stubbington
European stocks fell Wednesday, hit by a big selloff in Greece
and caution ahead of the latest message on the path of monetary
policy due from the U.S. Federal Reserve statement later in the
day.
The Stoxx Europe 600 index was 0.1% lower midway through the
session, after an upbeat tone after a strong finish to Tuesday's
U.S. session faded.
Germany's DAX was 0.2% lower, France's CAC-40 lost 0.5%, while
the U.K.'s FTSE 100 fell 0.3%. U.S. stock futures indicated a 0.1%
opening gain for the S&P 500. Changes in futures aren't
necessarily reflected in market moves after the opening bell.
In Europe, Greek banks were the heaviest fallers, but the
weakness also spread to the wider eurozone banking sector.
Elsewhere, some firms were lifted by upbeat earnings reports, with
Electrolux AB and Nordea Bank AB climbing.
In currency markets, the euro was steady against the dollar at
$1.1360. The currency had recovered from 11-year lows on Tuesday
amid broad weakness for the buck.
After some patchy economic data, "markets seem wary that
Wednesday's [Fed] statement could bring a dovish shift in message,"
said currency strategists at BNP Paribas. Still, the Fed is likely
to provide a renewed boost for the dollar by sticking to its
message that rates will rise this year, they said.
In commodities markets, Brent crude oil was down 0.8% at $49.22
a barrel, and gold was 0.3% lower at $1,288.10 an ounce.
Write to Tommy Stubbington at tommy.stubbington@wsj.com
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