AMSTERDAM/LONDON: European stocks ended flat on Wednesday as optimism over a swathe of positive bank earnings was offset by caution setting in before the US Federal Reserve’s policy decision.
The pan-European STOXX 600 index ended largely unchanged, with bank stocks leading gains among the regional sectors. The subindex ended 1.5% higher.
Deutsche Bank jumped 10.7% to the top of the STOXX 600, as strength at its investment bank helped the German lender post a better-than-expected first-quarter net profit.
Spanish bank Santander rose 2.7% after it beat first-quarter forecasts with its profit, while not adding to provisions for the pandemic and booking record US earnings.
Lloyds Banking Group also rose 3.5% after reporting a better-than-expected profit, while Swedish bank SEB marked small gains on a profit beat. The world’s biggest advertising company WPP jumped 4.3% to the top of the FTSE 100 on returning to underlying growth in the first quarter, as clients launched new products and brands.
German food delivery company Delivery Hero surged 9.4%, after it forecast revenues to more than double in 2021. Among decliners, Lysol maker Reckitt Benckiser Group fell 3.9%, even as the company backed its full-year outlook.
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