/Europe Markets: Stocks in Europe weaken from 22-month highs

Europe Markets: Stocks in Europe weaken from 22-month highs


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Stora Enso’s paper mill in Imatra, Kaukopaa.

Stocks in Europe edged lower on Tuesday, backing away from highs ahead of a key meeting on U.S. interest rates.

After finishing on a 22-month high on Monday, the Stoxx Europe 600

SXXP, -0.48%

 declined 0.4% to 397.40.

The German DAX

DAX, -0.23%

 declined 0.16% to 12921.03, the French CAC 40

PX1, -0.15%

 declined 0.18% to 5720.52 and the U.K. FTSE 100

UKX, -0.52%

 declined 0.33% to 7306.93.

The S&P 500 closed Monday on a record high. The Federal Reserve is due to kick off its two-day meeting, with expectations of a third straight interest-rate cut.

Shares in Stora Enso

STERV, -7.68%

 plunged 7.6% as the paper and pulp manufacturer reported “deteriorating trading conditions” it blamed on trade tensions and worries over a hard Brexit. Its third-quarter operating profit fell by 53% as sales fell 7%, and its forecast for the fourth quarter was “markedly below current consensus,” according to analysts at Citi.

UPM-Kymmene

UPM, -4.36%,

a rival pulp firm, fell 4%.

BP

BP, -2.73%

 was the largest drag on the Stoxx 600, easing 1.3%. The oil giant topped consensus expectations as it reported a decline in its underlying replacement cost profit, due to falling oil prices and the impact of Hurricane Barry on production.

Fresenius Medical Care

FME, +5.46%

 rallied 5% as the dialysis product maker reported stronger-than-forecast profit.

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