European Stocks Weaken after UAE Leaves OPEC
European stocks weakened on Wednesday (April 29), with the Stoxx 600 down around 0.3% amid a wave of disappointing earnings reports and rising uncertainty in the energy market. Most sectors and major bourses were in the red as investors weighed corporate and macroeconomic factors simultaneously.
In banking, UBS rose around 4.6% after posting a first-quarter net profit of around US$3 billion, while Santander rose around 3% after its underlying profit of 3.56 billion euros beat estimates. However, Deutsche Bank fell around 2.7% despite rising post-tax profit due to a higher-than-expected provision for credit losses of 519 million euros.
Outside of banking, Adidas surged around 8.5% after its first-quarter performance beat estimates, driven by 14% sales growth to 6.6 billion euros and operating profit of 705 million euros. Adidas's gains were one of the factors that helped cushion the index's decline amid widespread pressure on other stocks.
Meanwhile, the market is focusing on the United Arab Emirates' plan to withdraw from OPEC on May 1, which complicates oil supply projections and increases market sensitivity to energy distribution issues, including risks in the Strait of Hormuz. Global investors are also awaiting the Fed's decision, which is expected to hold interest rates, with attention to its impact on yields, the dollar, and risk appetite. (gn)
Source: Newsmaker.id
