European stocks struggled on Wednesday, alongside U.S. equity futures as investors awaited the outcome of the Federal Open Market Committee meeting and ahead of that, a Bank of England policy decision.
Chip stocks were under pressure after a Samsung Electronics executive warned of problems with global shortages.
The Stoxx Europe 600 index SXXP,
U.S. stock futures ES00,
Fed Chairman Jerome Powell’s news conference will also be a highlight as pressure remains on the bond market. The yield on the 10-year Treasury TMUBMUSD10Y,
Elsewhere, no change is expected from the Bank of England’s Monetary Policy Committee, which is expected to keep its key rate steady at 0.1% and maintain the ceiling of its ongoing bond-buying program at £895 billion ($1.2 trillion). Gilt yields TMBMKGB-10Y,
New car sales in the European Union fell 19% on an annual basis in February, as economic uncertainty and measures to stop the spread of COVID-19 weighed on demand, the European Automobile Manufacturers’ Association said.
But BMW BMW,
Shares of STMicroelectronics STM,
Those losses came after a warning over chip shortages that have hit the global auto sector and could spread to technology.
“There’s a serious imbalance of supply and demand in the IT sector globally…It is hard to say the shortage issue has been solved 100%,” co-Chief Executive Officer Koh Dong-jin said at a shareholder meeting, according to the Financial Times.