Oct 27, 2022
VOT Research Desk
Market Insights, Considerations & Analytics
After reaching a five-week high on Wednesday, the pan-European STOXX 600 index lost 0.3 percent.
Investors were cautious ahead of a widely anticipated interest rate hike from the European Central Bank, which caused European shares to open lower on Thursday. Meanwhile, Credit Suisse plunged after the troubled Swiss bank unveiled plans for restructuring.
After announcing that it would sell stock to raise 4.05 billion Swiss francs ($4 billion), Credit Suisse fell 8.5%. In an effort to recover from a string of severe losses, the company cut thousands of jobs and spun off its investment bank.
The lender’s stock fell to a two-week low, making it one of the top decliners on the STOXX 600 index.
Investors are looking forward to the European Central Bank’s policy decision, which is expected at 12:15 GMT. Traders are almost entirely pricing in a 75-basis-point increase to 0.75 percent.The bank is also likely to begin reducing its 8.8 trillion euro balance sheet, which has grown over the years due to debt purchases and extremely low-interest loans given to banks.
After the Finnish refiner reported operating results that were lower than anticipated for the third quarter, Neste fell 7.2%, among other stocks.
STMicroelectronics, a Franco-Italian chipmaker, saw sales growth slow in the second half of the year, causing a drop of 3.1%.
The ShellHowever, after the energy conglomerate reported a profit of $9.45 billion for the third quarter, announced plans to significantly increase its dividend by the end of the year, and extended its program for share repurchasing, RDSa) saw a 2.1% increase.
