Global Stocks Drift Lower Ahead of Fed Decision

By Will Horner 

Global stocks edged lower amid disappointing earnings and as investors awaited the Federal Reserve's decision on interest rates.

The pan-continental Stoxx Europe 600 index edged down 0.1%, with some of the region's biggest banks leading declines.

Shares of troubled German lender Deutsche Bank fell 6.1%, making it the worst performer in Europe, after it said efforts to overhaul its global operations had taken a large chunk out of its revenue.

Shares in Fiat Chrysler Automobiles and Peugeot maker PSA Group surged after the companies confirmed they were discussing a merger that would create the world's fourth-largest auto maker by volume. Fiat shares rose 8% in Milan and PSA gained 6%.

In Asia, the Shanghai Composite Index fell 0.5%, while Japan's Nikkei 225 gauge dropped 0.6%.

Stock futures linked to the Dow Jones Industrial Average drifted down 0.1%. Investors are largely holding off from making major moves until the conclusion of the Fed's monetary policy meeting later in the day, said Daniel Lacalle, chief economist and chief investment officer at Madrid-based investment firm Tressis.

"With the two main negative catalysts in the mind of market participants -- Brexit and the U.S.-China trade war -- having been not resolved, but at least showing some light at the end of the tunnel, then monetary policy becomes the key factor," he said.

The central bank is widely expected to cut interest rates by a quarter of a percentage point after markets close. Key data during the day will also give investors and policy makers additional clues on the state of the economy.

(END) Dow Jones Newswires

October 30, 2019 05:38 ET (09:38 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.