European equities finished sharply lower on Wednesday, weighed down by another session of rising energy costs as investors looked ahead to a series of key central bank decisions. The Eurozone’s STOXX 50 declined 0.5% to 5,744, while the broader STOXX 600 shed 0.7% to close at 598.
Technology stocks led the retreat after outperforming earlier in the week, with SAP falling 2.5% and Prosus slumping 7.4%. A fresh surge in natural gas prices hit utilities, dragging Enel down by more than 3%. Among financials, UniCredit lagged its banking peers as markets awaited developments following Commerzbank shareholders’ call regarding UniCredit’s proposed $40 billion takeover offer.
In the monetary policy backdrop, the Federal Reserve is widely expected to leave interest rates unchanged later today, though the FOMC will release updated economic projections. Looking to tomorrow’s session, the European Central Bank, Bank of England, Swiss National Bank, and Sveriges Riksbank are likewise anticipated to keep policy rates on hold.
