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European markets close lower amid uncertainty over rate cut outlook; Equinor down 8%

Holly Ellyatt

This is CNBC's live blog covering European markets.

European markets retreated Wednesday amid ongoing uncertainty over the rate cut outlook.

European markets


The pan-European Stoxx 600 closed 0.3% lower, wiping out some of Tuesday's gains, with most sectors in negative territory. Oil and gas stocks were down 1%, while autos were up 0.5%.

Shares of Norwegian oil and gas company Equinor fell 7.7% after it said it would reduce cash payouts to shareholders on the back of a normalization in energy prices last year. The announcement came as the company posted a slightly smaller-than-expected drop in operating profit in its fourth-quarter results.

Doubts over the timetable for interest rate cuts have crept in after U.S. Federal Reserve Chair Jerome Powell signaled last week that investors may have to wait longer than expected for a central bank pivot.

Powell also reiterated Sunday that more positive data on inflation was needed before rates could come down. His comments during an interview with "60 Minutes" also led many to believe that there may be fewer cuts this year than some had hoped.

Asia-Pacific markets were mostly higher Wednesday, with the exception of Japan's Nikkei, as investors assessed corporate earnings.

U.S. stocks were higher, as investors digested another slate of quarterly results halfway through the corporate earnings season.

Europe stocks close lower

European stocks closed lower Wednesday, with the regional Stoxx 600 index down 0.3%.

The telecoms and mining sectors led the losses, both down around 1.1%.

The U.K.'s FTSE 100 and Germany's DAX both slipped more than 0.6%, while France's CAC 40 fell 0.36%.

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U.S. stocks opened higher on Wednesday. The S&P 500 added 0.45%, while the Nasdaq Composite jumped 0.5%. The Dow Jones Industrial Average rallied 120 points, or 0.3%.

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Equinor shares sink 6% on fourth-quarter results

Shares of Norwegian oil and gas company Equinor fell 6% after it said it would reduce cash payouts to shareholders on the back of a normalization in energy prices last year.

It comes as it posted a slightly smaller-than-expected drop in operating profit in its fourth-quarter results.

Equinor's adjusted earnings before tax for the October-December period fell to $8.68 billion from $17 billion the year prior.

— Karen Gilchrist

Shares of Germany's Renk jump 18% on market debut

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Shares of German tank gearbox manufacturer Renk jumped 18% to trade at 18.50 euros ($19.90) each following its debut on the Frankfurt bourse Wednesday.

The shares were issued at 15 euros each for the defense company, which supplies gearboxes for Leopard tanks used in conflicts such as the war in Ukraine.

CEO Susanne Weigand said the ongoing conflict in Europe indicated that it was the right time for the company to list following a four-month delay.

"In Europe, armed forces need to ramp up specifically on the land side, which gives a ramp up to our tank business," Wiegand told CNBC. She added that the company expects a mid-term annual growth rate of around 10%.

The public listing marks Germany's first this year as investor appetite shows signs of growing after a cautious 2023.

— Karen Gilchrist

Stocks on the move: Barratt Developments down 4.3%

U.K. homebuilder Barratt Developments fell 4.3% after announcing a £2.5 billion ($3.15 billion) deal to buy fellow property developer Redrow.

Meanwhile, German computer software company TeamViewer rose 9.2% after reporting higher-than-expected fourth-quarter revenue.

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European markets: Here are the opening calls

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 22 points higher at 8,442, Germany's DAX up 26 points at 18,896, France's CAC 7 points higher at 8,244 and Italy's FTSE MIB up 64 points at 35,091, according to data from IG.

Earnings are due from Swiss Re, Zurich Insurance, Siemens, Deutsche Telekom, BT and EasyJet, among others. There are no major data releases.

— Holly Ellyatt