Chipmakers, banks prop up European stocks after Fed cools mood

  • Reuters
  • Stock Market News
Chipmakers, banks prop up European stocks after Fed cools mood
Credit: © Reuters.

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June 26 (Reuters) - European stock markets fell early on Wednesday, as bets on an aggressive half-point cut in U.S. interest rates collapsed following Wednesday's message from Federal Reserve, soothed in part by strong results from chipmaker Micron Technology.

Fed Chair Jerome Powell said on Tuesday the central bank is "insulated from short-term political pressures", pushing back on pressure from President Donald Trump to cut interest rates and saying a cut next month is not locked in. still firmly expect the U.S. central bank to ease policy but comments from Powell and others were enough to weaken bets on the decisive new support for growth that has driven stock markets steadily higher this month.

The pan-European STOXX 600 index .STOXX fell 0.3% by 0706 GMT. Banking stocks .SX7P , which unlike consumers, retailers or manufacturers tend to benefit from higher interest rates, outperformed.

Micron's MU.O better-than-expected results overnight supported semiconductor companies globally, with European players Infineon IFXGn.DE , Siltronic WAFGn.DE , Dialog Semi DLGS.DE and AMS AMS.VI all up between 0.6% and 1.3%.

Thyssenkrupp TKAG.DE gained 3%, and was among the biggest gainers on the main index, on a report of a possible takeover offer by Kone KNEBV.HE for the German company's elevator business.

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