Investing.com – European stocks trade mixed Wednesday following the release of Deutsche Bank AG (NYSE 🙂 reports. Barclays (LON 🙂 and Santander Bank (MC 🙂 Brasil SA ADR (NYSE 🙂 and ahead of the upcoming monetary policy statement from the US Federal Reserve.
At 04:05 am ET (08:05 GMT), the index in Germany was trading 0.1% lower, in France it was up 0.8% and the UK index was up 0.2%.
German Deutsche Bank, despite strong performance, reported a loss in the second quarter, as it had to set aside 761 million euros ($ 891.5 million) to cover credit losses. The bank’s shares rose 0.4%.
Spanish bank Santander sank 3.6% after it posted a € 12.6bn asset impairment that resulted in unexpectedly large losses, while Barclays, whose shares fell 3.3%, posted 1 £ 6 billion.
And the company Tullow Oil (LON: LON 🙂 said it expects revenue to decline and predicts a decline in pre-tax profit of $ 1.4 billion to $ 1.7 billion in the first half. Its shares fell 4.7%.
In the retail sector, shares in UK retailer Next jumped 7.3% to a four-month high after recovering much better-than-expected full-year guidance for the second quarter. Dry (PA: PA 🙂 rose 4.8% after reporting a smaller-than-expected decline in quarterly sales due to strong online trading results, in contrast to rival LVMH Moet Hennessy Louis Vuitton SE (PA :). Puma also gained 4.1% on lower-than-expected losses.
Sanofi (PA 🙂 shares surged 0.8% and GlaxoSmithKline PLC ADR (NYSE 🙂 shares gained 0.9% as the two companies signed a deal to supply the UK with up to 60 million doses of a possible Covid-19 vaccine, which they work together.
Mining giant shares Rio Tinto PLC (LON: LON 🙂 gained 0.8% after its announcement of a dividend increase and a strong outlook for the rest of the year.
Nevertheless, today the market will be influenced by the decisions of the US Federal Reserve System on monetary policy and the press conference of its head at 14:00 ET (18:00 GMT). The Fed is not expected to change its interest rate or its debt-buying policy, and on Tuesday it extended most of its emergency credit lines for another three months. Some believe Fed Chairman Jerome Powell may point to further policy easing at a press conference today.
Oil prices have risen, aided by an unexpected reduction in US oil inventories, although fears of potential damage to fuel demand from the pandemic persist.
Crude futures traded 0.6% higher at $ 41.30 a barrel, while the international benchmark rose 0.8% to $ 43.94 a barrel.
And futures were not up 0.5% to $ 1953.55 an ounce, staying high, while the pair traded at 1,1757, up 0.4%.
Written by Peter Nurse