(Bloomberg) -- European stocks paused at January 2022 high ahead of the Federal Reserve meeting later in the week, with sentiment also weighed down by China's property crisis, the Middle East conflicts and a flurry of incoming corporate earnings.
The Stoxx 600 Index was nearly flat by 8:11 a.m. in London, with losses in tech and retail sectors outweighing gains in energy. Holcim Ltd. shares jumped after the Swiss building-materials announced that it intends to spin out its North America operations into a separate US-listed entity.
Among other notable moves, Royal Philips NV fell after the Dutch company said it was suspending sales of sleep apnea devices and ventilators in the US, while Ryanair Holdings Plc slipped after it trimmed its profit guidance for this fiscal year.
European equity markets are hovering near their highest level in two years and up about 1% year-to-date. The Euro Stoxx 50 index has also hit its highest since 2001, with the latest leg of the surge powered by blowout earnings from luxury behemoth LVMH and the region's two biggest tech stocks, ASML and SAP.
“I would expect a little of digestion from the big move up on Friday but I haven't seen anything over the weekend to scare investors off so I'm sticking to a positive bias.”, Harry Heneage, a sales trader at Kepler Cheuvreux's KCx in London.
“It will be a very busy week with many possible market catalysts”, Heneage added, pointing out to a flurry of key US earnings including Microsoft and Meta but also the meeting of The Federal Open Market Committee in the US and the Bank of England in Europe.
For more on equity markets:
- Europe's Own Tech Stars Leading Index to Record: Taking Stock
- M&A Watch Europe: Holcim, Applus, Air Astana, Philips, BP
- US Stock Futures Fall
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