European Stocks Steady Amid Fed Focus as Banks Rise on Results

European shares ended little changed ahead of the Federal Reserve’s policy decision, while better-than-forecast earnings boosted banks.

The Stoxx Europe 600 Index edged up less than 0.1% at the close. Banks led gains as Deutsche Bank AG jumped after raising its outlook, while Lloyds Banking Group Plc and Banco Santander SA posted results that beat estimates. Energy shares rose along with oil futures amid signs of stronger demand, while personal-care stocks fell the most.

Europe’s benchmark has moved in a narrow range after dropping from an all-time high last week. With stocks rallying hard in anticipation of an earnings recovery, only strong beats are spurring investor cheer. Yields on 10-year Treasuries advanced, with investors awaiting the Fed’s rate decision due after the European market close for clues on the timing of stimulus tapering.

European Stocks Steady Amid Fed Focus as Banks Rise on Results

“Earnings are being spectacular in the U.S. and very good in Europe but markets are suffering from altitude sickness as shares had jumped too fast, too high, and most positives may have been already priced in,” said Ricardo Gil, head of asset allocation at Trea Asset Management in Madrid.

Read More: Deutsche Bank Results Praised, Barry Falls: EMEA Equity Movers

Delivery Hero SE jumped 9.4% after the food-delivery firm predicted revenue this year will grow to as much as 6.6 billion euros ($8 billion). Sanofi advanced 2.4% after first-quarter earnings beat analysts’ estimates, helped by demand for the blockbuster therapy Dupixent and a one-time gain.

Travel and leisure shares retreated, with Kindred Group Plc sliding on worse-than-estimated earnings and Evolution Gaming Group AB falling from a high. Kone Oyj dropped the most on record, with analysts saying that the elevator maker’s first-quarter orders look soft and that margin pressures are emerging.

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