European Markets Finished Mixed Ahead Of Fed Decision

(RTTNews) - The European markets ended Wednesday's session with mixed results, due to concerns over Greece and caution ahead of the upcoming statement from the Federal Reserve. Greece reportedly frustrated its main creditors on Tuesday by refusing to update euro zone peers on its reform progress at a scheduled teleconference.

The Federal Reserve will conclude its 2-day policy meeting later today. The Fed is not expected to announce an increase in interest rates, but traders will be paying close attention to any changes to the accompanying statement. In light of upbeat employment data, many analysts expect the Fed to remove the word "patient" regarding when it plans to begin normalizing monetary policy.

European Central Bank President Mario Draghi on Wednesday sought more efforts to complete the European Monetary Union as anti-austerity protesters attacked the inauguration ceremony of the bank's new headquarters in Frankfurt.

"The euro, our single currency, has become the most tangible symbol of European integration - a piece of Europe accessible and valuable to each and every one of us. This building will inevitably become known as the "house of the euro," Draghi said in a speech at the inauguration of the building in Grossmarkthalle.

Activists from the Europe-wide Blockupy movement took to streets in the German financial capital with rallies and blockades in protest against the European crisis regime consisting the Troika - namely the European Commission, the ECB and the IMF, and the European Union.

Demonstrations were largely peaceful though riots broke out in some places and protesters set alight vehicles, while police used water cannons to restore calm.

Sweden's central bank unexpectedly slashed its key interest rate on Wednesday and said it will buy more government debt, citing deflationary concerns due to a strengthening krona.

The Executive Board of the Riksbank, led by Governor Stefan Ingves, cut the repo rate by 15 basis points to -0.25 percent. Policymakers also decided to buy government bonds for SEK 30 billion, with maturities of up to 25 years.

Bank of England policymakers unanimously decided to keep the monetary policy unchanged at the meeting held on March 4 and 5, the minutes showed Wednesday. The monetary policy committee voted 9-0 to retain the benchmark rate at a historic low of 0.50 percent and quantitative easing at GBP 375 billion.

All members agreed that it was appropriate to leave the stance of monetary policy unchanged, although two members regarded this month's decision as finely balanced.

UK Chancellor of the Exchequer George Osborne raised the economic growth forecasts for this year and next, but warned that any adverse development in Greece could significantly affect the economy.

The growth forecast for this year was raised to 2.5 percent from 2.4 percent predicted by the Office for Budget Responsibility in its December autumn statement.

The projection for next year was boosted slightly to 2.3 percent from 2.2 percent. Growth is seen improving to 2.4 percent by 2019.

The unemployment rate was forecast to fall to 5.3 percent this year, while the inflation forecast was revised down to 0.2 percent.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased by 0.21 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.63 percent.

The DAX of Germany dropped by 0.48 percent, but the CAC 40 of France rose by 0.09 percent. The FTSE of the U.K. gained 1.57 percent and the SMI of Switzerland finished higher by 0.63 percent.

In Frankfurt, BMW declined by 4.21 percent. The company presented its forecast for 2015 today.

Volkswagen and Daimler lost 2.95 percent and 1.86 percent, respectively.

RWE increased by 3.78 percent and E.ON added 1.27 percent.

In Paris, Renault declined by 4.36 percent and Peugeot dropped by 2.76 percent.

Shares of Lafarge climbed by 5.45 percent, as it attempts to recover from recent weakness.

In London, Standard Chartered surged by 8.08 percent. Barclays upgraded its rating on the stock to "Overweight" from "Equal weight."

Inditex, which reported annual results, gained 3.48 percent in Madrid. SBM Offshore surged by 8.54 percent in Amsterdam, after the company agreed to co-operate with Brazil on a corruption probe associated with Petroleo Brasileiro SA.

Eurozone merchandise trade surplus for January rose sharply from the same month last year as exports stagnated and imports declined, data from Eurostat showed Wednesday. The unadjusted trade surplus grew to EUR 7.9 billion from EUR 0.1 billion a year ago. Exports remained unchanged during the period, while imports fell 6 percent.

Eurozone construction output increased for the second straight month in January, at a faster pace, data from Eurostat showed Wednesday. Output in the construction sector climbed 1.9 percent month-on-month in January, much faster than December's 0.2 percent increase, which was revised from a 0.8 percent decline. In November, production had fallen 0.4 percent.

The U.K. unemployment rate remained at the lowest level in more than six years and the employment rate hit the highest since 1971 during three months to January. The ILO jobless rate came in at 5.7 percent in three months to January, the same rate as in October to December period, the Office for National Statistics said Wednesday.

It was expected to fall to 5.6 percent. Nonetheless, the rate was below the 6 percent seen in the quarter ending October and this was the lowest rate in more than six years.