European markets close lower as investors focus on the Fed's next move; Maersk down 6%

German electric light maker AMS-Osram rose 8% in afternoon deals after reporting solid third-quarter revenues and operating profitability in line with expectations.

Danish healthcare company Demant slipped to the bottom of the Stoxx 600, down 14%, after posting a pre-announcement of its third-quarter results.

— Karen Gilchrist

U.S. stocks moved lower Wednesday ahead of the Federal Reserve's latest rate decision.

The Dow Jones Industrial Average was down 0.3% in early deals while the S&P 500 was 0.4% lower. The Nasdaq Composite was also 0.45% lower.

The Fed is expected to announce a 0.75 percentage point rate increase at the culmination of its policy meeting Wednesday.

— Karen Gilchrist

Danish hearing health care company Demant fell more than 12% by early afternoon to the bottom of the Stoxx 600 after its preliminary third-quarter earnings report.

Maersk, the world's largest container shipping firm, saw its shares fall more than 7% after posting record profits for the third quarter on the back of high ocean freight rates, but noted a slowdown in demand.

At the top of the European blue chip index, Vestas shares jumped more than 7% after the Danish wind turbine company's earnings call helped ease market concerns about its earlier report.

- Elliot Smith

Spanish factory activity contracted sharply in October, its fourth consecutive month of shrinkage as high inflation caused output and new orders to plunge.

The S&P Global manufacturing PMI (purchasing managers' index) fell to 44.7, its lowest level since May 2020, from 49.0 in September. Any reading below 50 represents a contraction.

- Elliot Smith

Maersk, the world's largest container shipping firm, on Wednesday posted record profits for the third quarter on the back of high ocean freight rates, but noted a slowdown in demand.

The Danish giant, widely seen as a barometer for global trade, reported earnings before interest, tax, depreciation and amortization (EBITDA) of $10.9 billion for the quarter, above consensus analyst projections of $9.8 billion and up around 60% from the same period a year ago.

CEO Søren Skou said the "exceptional results" this year were driven by a continued rise in ocean freight rates, but said it was clear that these have peaked and warned of "dark clouds on the horizon."

Read the full story here.

- Elliot Smith

Corporate earnings remain a key driver of individual share price action in Europe.

Danish hearing health care company Demant fell more than 11% in early trade to the bottom of the Stoxx 600 after its preliminary third-quarter earnings report.

At the top of the index, Swiss dental equipment firm Straumann gained 4% after its quarterly results.

- Elliot Smith

The market expects the Bank of England to raise interest rates by 75 basis points on Thursday, its largest hike since 1989, but economists believe policymakers will strike a dovish tone looking ahead as the prospect of a recession deepens.

With U.K. inflation running at a 40-year high of 10.1% in September, the Bank is seen hiking its main lending rate for the eighth consecutive time, but weaker growth momentum and a major shift in fiscal policy is expected to ease calls for more aggressive monetary tightening.

Read the full story here.

- Elliot Smith

There is huge demand for cars in both the U.S. and China right now, according to fund manager Steven Glass.

He named one autos stock to cash in, which he said has a "very well-managed" balance sheet and a price-to-earnings ratio at a 20-year low.

Pro subscribers can read more here.

— Zavier Ong

Investors may be getting a bit too excited about potential changes from the Federal Reserve, according to Lauren Goodwin, economist and portfolio strategist at New York Life Investments.

Goodwin said in a note that she expected the Fed to hike by 0.75 of a percentage point on Wednesday and half a point in December, but that the slowdown should not be seen as the start of a big shift from the central bank.

"A Fed pause is not the same as a pivot. Certainly, deteriorating economic and credit conditions could cause the Fed to pivot modestly at some point, but a full pivot into accommodative territory is highly unlikely in the next year," Goodwin said in a note.

Goodwin pointed out that the first rate hikes should now start to show their impact across the broad economy, instead of just housing. However, the Fed will need several months of data to go its way before changing course.

"At this point, with inflation surprising as much as it has already, the Fed will want to see clear signs of reversal in wage growth before pivoting. Recession should be considered a base case rather than a risk," Goodwin said.

— Jesse Pound

Goldman's Jeff Currie says there's one investment that can protect investors from rising interest rates, inflation, and geopolitical risk.

Currie, global head of commodities research at Goldman Sachs, said it has 20-30% growth potential in the short term, with additional upside risks to the price target.

CNBC Pro subscribers can read more here.

— Ganesh Rao

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 32 points higher at 8,365, Germany's DAX up 25 points at 18,510, France's CAC 7 points higher at 8,143 and Italy's FTSE MIB up 59 points at 33,908, according to data from IG.

Earnings are due from Ferrovial, Telefonica, EDP, Enel, Pirelli and Salvatore Ferragamo.

— Holly Ellyatt