European Stocks Close Broadly Higher Ahead Of Fed Policy

(RTTNews) - European stocks closed higher on Tuesday, with investors digesting some regional economic data and earnings news, in addition to assessing the monetary policy decisions from the Reserve Bank of Australia and the Bank of Japan, ahead of the Federal Reserve's policy announcement.

The Fed is widely expected to leave interest rates unchanged. The central bank's accompanying statement and economic projections could have a significant impact on the outlook for rates.

Recent hotter-than-expected inflation readings have reduced optimism about the likelihood of the Fed's first rate cut coming in June.

The Bank of England and the Swiss National Bank are also scheduled to announce their interest rate decisions this week.

Expectations of a rate cut by the European Central Bank in June aided sentiment a bit.

The pan European Stoxx 600 gained 0.26%. The U.K.'s FTSE 100 advanced 0.2%, Germany's DAX climbed 0.31% and France's CAC 40 ended 0.65% up. Switzerland's SMI dropped 0.39%.

Among other markets in Europe, Austria, Belgium, Finland, Netherlands, Norway, Spain, Sweden and Turkiye closed higher.

Denmark, Greece, Iceland, Poland, Portugal and Russia ended weak.

In the UK market, Unilever gained more than 3%. The consumer goods major announced plans to separate Ice Cream division, and to launch a major productivity program to drive faster growth and higher margin.

Rolls-Royce Holdings gained about 2.3%. Haleon, BAE Systems, Ashtead Group, Smurfit Kappa Group, Royal Dutch Shell, Rio Tinto, BP and DS Smith climbed 1 to 2%.

Fresnillo, Reckitt Benckiser and Airtel Africa lost 3 to 4.5%. Burberry Group ended down more than 2%. Glencore, Taylor Wimpey, Ocado Group, Barratt Developments, Entain, Frasers Group, DCC, Compass Group, Prudential, Centrica and Endeavour Mining also ended notably lower.

In the German market, Hannover Rueck rallied more than 4%. Commerzbank, BASF, Fresenius Medical Care, Continental and Sartorius gained 2 to 3.25%.

Vonovia, Volkswagen, Zalando, Munich RE, Allianz, Porsche, Deutsche Bank, MTU Aero Engines, HeidelbergCement, Daimler Truck Holding, BMW, Deutsche Telekom and Siemens Healthineers advnced 1 to 2%.

Siemens tumbled nearly 6%. Infineon, E.ON, RWE, Bayer and Puma lost 1 to 2%.

In Paris, TotalEnergies gained about 2.7%. Thales, Renault, Airbus Group, Unibail Rodamco, Stellantis, Societe Generale, Safran, Essilor, BNP Paribas, Credit Agricole, AXA, Eurofins Scientific, Hermes International and Michelin moved up 1 to 2%.

STMicroElectronics, Dassault Systemes and WorldLine lost 2 to 3%. Alstom and Teleperformance also declined sharply.

On the economic front, survey data from the think tank ZEW revealed Germany's economic sentiment strengthened more than expected to its highest level in just over two years in March amid increasing investor expectations that the European Central Bank will cut interest rates in the coming months.

The ZEW indicator of economic sentiment rose markedly to 31.7 in March from 19.9 in February.

Switzerland's foreign trade surplus decreased in February from a month earlier as imports rose faster than exports, data from the Federal Customs Administration showed.

The trade surplus dropped to CHF 2.2 billion in February from CHF 2.7 billion in January.

In real terms, exports rose 0.2% over the month, reversing a 0.5% decline in January. Imports also rebounded 3.8% after falling 3.9% in the prior month.

According to the Federation of the Swiss Watch Industry, watch exports decreased 3.8% year-on-year in February.