European Shares Rise Ahead Of Fed Meeting; FTSE 100 Dips

European stocks were broadly higher on Tuesday after dip-buying in the technology sector boosted U.S. equity shares to a higher close overnight.

The upside remained capped ahead of the Federal Reserve meeting. The U.S. central bank is expected to hike interest rates by a half-a-percentage point when it hands down its policy decision on Wednesday – the first such increase in about 20 years.

The pan European Stoxx 600 was up 0.6 percent at 446.31 after tumbling 1.5 percent on Monday.

The German DAX rose half a percent and France’s CAC 40 index gained 0.8 percent while the U.K’s FTSE 100 dipped 0.4 percent as trading resumed after a long holiday weekend.

German banks Commerzbank and Deutsche Bank rose around 3 percent as the yield on the 10-year German bund reached the 1 percent level for the first time in nearly seven years in anticipation of quicker interest rate hikes.

Logistics firm Deutsche Post added about 1 percent after posting higher profit for the first quarter and confirming its financial targets for 2022-2024.

French lender BNP Paribas climbed 3.4 percent after reporting a jump in first-quarter earnings.

Norwegian aluminum maker Norsk Hydro fell almost 4 percent after it warned of rising costs.

British oil & gas firm BP Plc rallied 3.2 percent after its Q1 earnings topped estimates.

Galp Energia SGPS SA fell 2.3 percent. The Portuguese energy company reported a swing to a net loss in the first quarter.

Swiss tech firm Logitech International dropped 2 percent after reporting a 20 percent fall in Q4 sales.

In economic releases, Germany’s unemployment declined in April, the Federal Employment Agency reportedly said.

The number of people out of work decreased 13,000 from March, compared to the expected decline of 15,000. The jobless rate remained unchanged at 5.0 percent in April, in line with expectations.

Data published by Destatis earlier in the day showed that the jobless rate fell to a seasonally adjusted to 2.9 percent in March from 3.0 percent in February.

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