European Markets Fall as Investors Turn Their Attention to The Fed Meeting This Week.

European markets were lower on Monday as investors focused on the next U.S. Federal Reserve meeting. The two-day meeting will conclude with the central bank's Federal Open Market Committee announcing its latest interest rate decision.
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The Stoxx 600 index remained down 0.5% in early afternoon trade, with nearly all sectors in the red. Tech led losses, down 2.2%.
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The Federal Reserve is expected to raise interest rates by one-quarter of a percentage point. Investors will be looking for clues about how much higher the central bank will take rates in the fight against inflation.
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In the Asia-Pacific region, stocks traded mostly lower on Monday as shares of Adani Group remained volatile after the conglomerate rebutted short seller firm Hindenburg’s accusations of embezzlement and fraud.
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U.S. stock futures were modestly lower on Monday as investors geared up for a week of key corporate earnings and the possible interest rate hike from the Federal Reserve.
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Roy Jakobs, CEO of Philips, recently discussed the company's fourth quarter earnings and their strategy to improve profitability and address supply chain shortages. Jakobs noted that the company is committed to improving its operations and that they are taking steps to address the root causes of the shortages. He also stated that Philips is confident in its ability to deliver on its promises to shareholders and customers.
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JD Sports, a British fashion retail group, said on Monday that the personal and financial information of around 10 million customers may have been accessed in a cyber attack. This information was released in a statement from the London Stock Exchange.
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The data at risk relates to historical orders placed between November 2018 and October 2020 with the chain’s JD, Size, Millets, Blacks, Scotts and MilletSport brands. It includes clients’ names, billing addresses, delivery addresses, email addresses, phone numbers, order details and the final four digits of customer payment cards.
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The company is advising its clients of the risk of fraud and phishing attacks, and is conducting an investigation in coordination with the UK’s Information Commissioner’s Office.
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JD Sports shares fell slightly to $160.8 at 11:58 a.m. London time, down 0.50% from the previous close price.
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Daniel Lacalle, chief economist at Tressis, says that inflation remains a major concern. He notes that core inflation is particularly high, and that this could lead to problems down the road.
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Automobile giants Renault and Nissan have agreed to restructure their alliance, which will see Renault's shareholdings in Nissan reduced from 43% to 15%. This move will help the two companies focus on their individual strengths and compete more effectively in the global marketplace.
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The proposed deal would equalize the companies' cross-shareholdings, allowing each carmaker to "freely exercise the voting rights attached to their 15% direct shareholdings, with a 15% cap," the companies said. The deal is still pending board approval.
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Under the new structure, Renault would transfer 28.4% of Nissan shares into a French trust.
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Renault's stock price was down 1.6% at 10:40 a.m. London time.
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Shares of British financial services group Legal & General dipped 2.5% after CEO Nigel Wilson announced he would be retiring after a decade in the role. Wilson has been with the company for over 30 years, and has been instrumental in its growth and success. His retirement will be effective from April 2019.
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The company said that Wilson would stay in his current role until a successor is appointed, which is expected to take around a year.
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It was noted that Wilson had delivered strong financial performance over a period of time, with total shareholder return exceeding 600%. This was attributed to significant growth in dividends, earnings per share, and ROE.
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Legal & General's share price has fallen by around 11% over the last year.
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Computacenter, a British IT services company, was up 8.8% in early trade after announcing that it expects its results for 2022 to outperform guidance. However, the company did flag continuing inflationary pressure.
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After announcing a range of measures to improve profitability, including 6,000 job cuts, Philips' stock rose by 5%.
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CEO Roy Jakobs told CNBC that the cuts were a "necessary intervention to help us become competitive and lean in the way we go forward in the market."
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At the bottom of European stocks, tech investment group Prosus dipped 5.5%. Last week, the company said it would shed around 30% of its workforce alongside its parent company as it looks to “strengthen cost structures.”
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Europe's Stoxx 600 index opened lower on Monday, with all sectors in the red or flat. This follows a trend from last week, when the index closed lower on Friday.
Technology stocks were the biggest losers on the day, with the sector falling 1.6%. Travel stocks were also down, losing 1.2%.
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This week, all eyes are on central banks as they announce their next moves on interest rates. The Federal Reserve will announce its decision on Wednesday, followed by the Bank of England and European Central Bank on Thursday.
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According to Goldman Sachs, one corner of the tech sector may be seeing limited appetite from the market. However, the investment bank remains optimistic about the sector as a whole.
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The newsletter names stocks with near-term opportunity, as well as “offensive picks” it says can outperform their peers as the economy recovers.
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European markets are set to open lower on Monday as investors turn their attention to the next U.S. Federal Reserve meeting. The two-day meeting will culminate in an announcement of the central bank's latest interest rate decision.
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The UK's FTSE 100 index is expected to open at 7,745, Germany's DAX at 15,122, France's CAC at 7,083 and Italy's FTSE MIB at 26,339, according to data from IG.
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Ryanair and Philips both reported earnings today. Spain also released preliminary inflation data for January.