Europe midday: Shares lower ahead of Fed decision

(Sharecast News) - European shares fell on Wednesday as investors digested the latest moves in US-China trade talks and awaited an interest rate decision from the Federal Reserve. The pan-regional Stoxx 600 index was down 0.36 at 534. Germany's DAX was 0.15% lower after bigger-than-expected a jump in factory orders in March.

Orders rose by 3.6% between February and March, according to the federal statistics office, beating analysts' expectations of a 1.3% increase. Without major orders, demand was up by 3.2%.

In other economic news, eurozone retail sales unexpectedly fell for the first time in five months in March, according to data released by Eurostat on Wednesday.

Retail trade volumes were 0.1% lower over the course of the month, following a 0.2% increase in February and no growth over November to January.

This was the first drop since a 0.3% decline in October and missed the consensus forecast for no growth.

Meanwhile, the eurozone's hard-pressed construction sector showed modest signs of improvement in April, a closely-watched survey showed on Wednesday.

The HCOB Eurozone construction PMI total activity index remained in negative territory last month, at 46.0. However, it was an improvement on March's 44.8, and the softest fall in construction activity since February 2023. New orders, while lower, also fell at the slowest rate in three years.

A reading below the neutral 50.0 suggests contraction, while one above it indicates growth.

US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China's top economic official in Switzerland this weekend for talks amid the ongoing trade war between the world's biggest economies.

'Concerns about how Trump's tariff wars will play out are still causing jitters, even though the door is open to a deal with China, with talks scheduled for this weekend," said Hargreaves Lansdown analyst Susannah Streeter.

"China is aiming to bolster its resilience and ability to withstand trade turmoil by unveiling a range of stimulus measures. It's being seen as tactical positioning to try and give its negotiator a firmer hand in discussions with US Treasury Secretary Scott Bessent in Switzerland."

In equity news, Novo Nordisk rose after the anti-obesity drugmaker beat forecast with its first-quarter operating profit, although it cut its full-year sales and profit outlook amid weak US prescription data.

Shares in Jyske Bank soared after the Danish lender's first quarter earnings beat forecasts.

Danish medical equipment maker Ambu fell 11% after reporting second-quarter sales and earnings below expectations.

Reporting by Frank Prenesti for Sharecast.com