Fed’s latest rate decision ahead

Stocks on the move: Ams-Osram up 5.8%, Hannover Rueck down 5.1%

Semiconductor manufacturer Ams-Osram rose 5.8% to lead the Stoxx 600 on news that it has appointed Aldo Kamper, formerly of German cable and harness business Aldo, as its new CEO.

At the other end of the European benchmark, Hannover Rueck slipped further in afternoon deals, falling 5.1%, after reporting its full-year results.

— Karen Gilchrist

U.S. stocks open lower ahead of Fed decision

U.S. stocks fell in early deals Wednesday as investors looked ahead to the Federal Reserve’s interest rate decision.

The Dow Jones Industrial Average shed 234 points, or about 0.7%, at the open. S&P 500 was down nearly 0.3%. Meanwhile, the Nasdaq Composite was 0.2% lower.

— Karen Gilchrist

U.S. private payroll growth rose 106,000 in January, lower than expected

U.S. companies added fewer positions than expected in January, according to the ADP.

Private payrolls rose by 106,000 in January, lower than the 190,000 estimate from the Dow Jones, as well as the 235,000 reported for December.

— Sarah Min

Novartis reports flat income, says growth expected in 2023

Novartis CEO: Expect continued growth in 2023

Swiss drugmaker Novartis reported core operating income of $16.7 billion for 2022, broadly flat year-on-year.

It forecast growth in the mid single digits for 2023, when it is due to spin off its Sandoz generics business.

Novartis Chief Executive Vas Narasimhan told CNBC’s Geoff Cutmore the company had faced challenges in the first half of 2022 including hyperinflation and the ongoing impact of the coronavirus pandemic; but that these factors were stabilizing, providing tailwinds for the year ahead.

Narasimhan addressed the potential impact of the U.S. Inflation Reduction Act on medicines pricing, which he said could be offset in the near-term but would require a reconsideration of strategy in the longer term.

He also discussed pharma legislation in Europe, where he said governments needed to “rededicate themselves to health care,” and the European Commission should “create a more pro-innovation environment.”

Novartis shares were 2.26% lower in early afternoon trade.

— Jenni Reid

BBVA’s chair discusses the company’s record profits

BBVA's chair discusses the company's record profits

Spanish bank BBVA reported record profits for 2022, attributing the rise to a jump in lending income and a strong performance in Mexico.

The 6.42 billion euros ($6.98 billion) net profit for the full year was ahead of analyst expectations.

Chair Carlos Torres Vila told CNBC he now expects lower growth than 2022 “but still growth.”

BBVA shares traded 3.6% higher around midday London time.

— Jenni Reid

Euro zone inflation dips for a third straight month as energy prices continue to fall

Inflation in the euro zone came in at 8.5% in January, according to preliminary data released Wednesday.

The 20-member region has gone through substantial price increases in 2022, after Russia’s invasion of Ukraine pushed up energy and food costs across the bloc. However, inflation started to ease in late 2022, showing two consecutive months of a reduction in headline levels. In December, the rate was recorded at 9.2%.

— Silvia Amaro

Major central banks set to signal interest rate glide path

The Federal Reserve building is seen before the Federal Reserve board is expected to signal plans to raise interest rates in March as it focuses on fighting inflation in Washington, January 26, 2022.

Joshua Roberts | Reuters

The U.S. Federal ReserveEuropean Central Bank and Bank of England are all expected to hike interest rates once again this week, as they make their first policy announcements of 2023.

Economists will be watching policymakers’ rhetoric closely for clues on the path of future rate hikes this year, as the three major central banks try to engineer a soft landing for their respective economies without allowing inflation to regain momentum.

The market is pricing in a 25 basis points hike from the Fed on Wednesday, but the key question is what the Federal Open Market Committee will indicate about further rate hikes in 2023.

Meanwhile 50 basis point hikes are expected from the ECB and BOE on Thursday.

Read the full story here.

— Elliott Smith

Stocks on the move: Husqvarna up 6.2%, QinetiQ down 4.2%

Swedish outdoor machinery seller Husqvarna was the top riser after the open, up 6.2%, despite reporting a higher operating loss for the fourth quarter. Adjusted for items including a restructuring the loss narrowed, however.

At the bottom of the Stoxx 600 index, U.K. defense firm QinetiQ shed 4.2%.

Germany reinsurer Hannover Rueck was down a similar amount after reporting higher full-year results that were in line with its previous forecast.

— Jenni Reid

European markets open higher as investors prepare for next Fed hike

Europe’s Stoxx 600 rose 0.3% in early trade, with travel stocks up 0.9% and financial services…

Read More: Fed’s latest rate decision ahead

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