A previous version of this report gave the wrong date for the Bank of England policy meeting. The story has been corrected.
European stocks struggled on Wednesday, alongside U.S. equity futures as investors awaited the outcome of the Federal Open Market Committee meeting.
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,
On Thursday, the Bank of England’s Monetary Policy Committee will announce its own policy decision. The central bank 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.