This is CNBC’s live blog covering European markets.
European markets are heading for a mixed open as traders await the U.S. Federal Reserve’s latest monetary policy announcement on Wednesday afternoon.
The U.K.’s FTSE 100 index is expected to open 6 points lower at 8,591, Germany’s DAX up 40 points at 23,276, France’s CAC 5 points higher at 7,696 and Italy’s FTSE MIB 26 points higher at 38,018, according to data from IG.
Global investors are gearing up for the Fed’s interest rate decision at 2 p.m. ET. Fed funds futures trading suggests just a 3.1% chance of the central bank cutting interest rates this meeting, according to CME’s FedWatch tool. Traders will nevertheless be listening for Fed Chair Jerome Powell’s comments after the announcement for insights into the path of rates and state of the economy.
Meanwhile in Europe, there’s another busy day of earnings ahead, with Novo Nordisk, Ørsted, Pandora, Veolia, Legrand, BMW, Siemens Healthineers, Fresenius, Skanska B, JD Wetherspoon, Vonovia, Delhaize and Telecom Italia. Data releases include European retail sales.
Overnight, U.S. stock futures advanced Tuesday night after government spokespeople said U.S. Treasury Secretary Scott Bessent and top trade official Jamieson Greer would meet with their Chinese counterparts this week in Switzerland. The news was taken as a positive sign for developments on trade negotiations after turbulent market action following President Donald Trump’s tariff announcement last month.
Meanwhile, Hong Kong markets jumped over 2% to lead gains in Asia-Pacific after China’s central bank and financial regulators announced sweeping plans to cut key interest rates in an effort to shore up growth in the face of trade worries.
— CNBC’s Lee Ying Shan and Alex Harring contributed reporting to this summary
Novo Nordisk cuts 2025 guidance, posts first-quarter profit beat
Boxes of Ozempic and Wegovy made by Novo Nordisk at a pharmacy in London on March 8, 2024.
Novo Nordisk on Wednesday reported a better-than-expected rise in first-quarter net profit but lowered its full-year sales growth forecast on weaker demand for its blockbuster Wegovy weight loss drugs amid increased competition from copycat compounders.
The Danish pharmaceutical giant’s net profit came in at 29.03 billion Danish kroner ($4.4 billion) for the three-month period to the end of March, ahead of the 27.8 billion Danish kroner forecast by analysts in an LSEG poll.
Sales of the company’s popular Wegovy obesity drug rose 83% annually at constant exchange rates to 17.36 billion Danish kroner, slightly below the 18.51 billion Danish kroner anticipated by analysts in a Factset poll Tuesday.
— Karen Gilchrist
Volatility to increase again amid continuing uncertainty, says TCW CEO Katie Koch
TCW CEO Katie Koch expects the rockiness to return to the markets as investors continue to digest economic data.
“There will be a lot of uncertainty,” she said in an interview with CNBC’s Sara Eisen from the sidelines of Milken Institute Global Conference Tuesday. “This is a process and it’s going to take time. We are going to continue to get a series of conflicting data points.”
“We’ve got a lot of dry powder and we’re excited for the opportunity to lean in when that happens,” she added.
The path of the economy can range anywhere from a soft landing to a recession to stagflation, Koch said. At the moment, she said a recession is possible but is too difficult to predict.
In the meantime, selectivity is key across the board, she said. In equities, there are some bottom-up opportunities and in private credit, she sees an opportunity in rescue financing. Still, longer term, Koch still believes in the artificial intelligence revolution and the shortage of energy to support it.
“Do I think there is massive wealth creation opportunities in equity markets by allocating capital to AI and energy? 100%,” Koch said. “I just think in the near term we’ve got a lot of volatility that we’ll have to weave through.”
— Michelle Fox
Stock futures rise on announcement of U.S.-China trade talks
Stock futures rallied after U.S. government spokespeople said that U.S. Treasury Secretary Scott Bessent and top trade official Jamieson Greer would meet with their Chinese counterparts this week in Switzerland.
Investors can take this as an indicator of forthcoming developments on trade negotiations after President Donald Trump’s tariff announcement last month ratcheted up volatility in the market.
— Alex Harring, Kevin Breuninger
European markets: Here are the opening calls
European markets are expected to open in mixed territory Wednesday.
The U.K.’s FTSE 100 index is expected to open 6 points lower at 8,591, Germany’s DAX up 40 points at 23,276, France’s CAC 5 points higher at 7,696 and Italy’s FTSE MIB 26 points higher at 38,018, according to data from IG.
There’s another busy day of earnings ahead with Novo Nordisk, Ørsted, Pandora, Veolia, Legrand, BMW, Siemens Healthineers, Fresenius, Skanska B, JD Wetherspoon, Vonovia, Delhaize and Telecom Italia. Data releases include European retail sales.
— Holly Ellyatt
