This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

European Stocks Trade Mixed Ahead of Fed Minutes

LONDON ( The Deal) --  European markets were mixed Wednesday, with a more nuanced message on interest rates from the Bank of England, fears of a huge fine for French bank BNP Paribas overhanging the French market and some investors still hoping for direction on U.S. policy from the minutes of the Federal Reserve's most recent meeting to be released later in the day.

Shares in BNP Paribas fell 1.8% to 50.76 euros on a report that the U.S. authorities could seek more than $5 billion in settlement of a sanctions busting investigation. France's largest bank is alleged to have violated sanctions on trading with Sudan and Iran. As well as a damaging fine, Bloomberg reported that New York Superintendent of Financial Services Benjamin Lawsky has also floated the possibility of temporarily banning BNP Paribas from transferring money in and out of the U.S. Nevertheless, by late morning in Paris, the CAC 40 index had recovered from its early weakness and was up 0.02% at 4,453.

In London there was good news in the form of better than forecast retail spending in April, with consumers' spending up 1.3% month on month compared with a predicted 0.5%, and the Office of National Statistics also revised upward its March figure from 0.1% to 0.55. The April figure was also up 6.9% from a year ago.

But the Bank of England, Britain's central bank, noted in the minutes from the last meeting of its Monetary Policy Committee that the decision on when and whether to raise interest rates from their historic low of 0.5% was now becoming "more balanced" for some members. Although the vote to keep interest rates at their current level was unanimous at the May meeting, and the committee said it will want to see more evidence that some slack is coming out of the U.K. economy, one or two members may be becoming more hawkish.

Must Read: European Stocks Fall on Disappointing Earnings

Also in London, a number of key stocks fell after going ex-dividend. Banking group HSBC Holdings (HBC) was the most important of these, falling 1.56% to 617.3 pence. Meanwhile major retailers, such as the supermarket chain Wm. Morrison and food and clothing group Marks & Spencer  lost ground after broker downgrades. London was down 0.1% at 6,795, while in Frankfurt, the DAX was off 0.29% at 9,666.

In Asia, the Tokyo market was once again hit by a strong yen, which affects exports, and indications from the Bank of Japan that it is in no hurry to offer new stimulus measures for the country's sluggish economy. The Nikkei was down 0.24% at 14,042.17.


Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HBC $0.00 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs