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Global markets were losing ground on Wednesday with investors expressing disappointment over a new round of financial updates, while oil prices were under pressure. Stocks in Asia closed mostly lower, and Europe followed suit with all major benchmarks mired in red. US stocks were also in the red, with Apple leading the market lower after the largest US Company by market cap reported disappointing quarterly earnings.
Earnings were in focus for investors in Europe on Wednesday, with a number of banks reporting. Spain’s Banco Santander was in the green after reporting a rise in net profit during the third quarter and beating analyst expectations. Similarly, shares of Nordea bank were in positive territory as it also reported third quarter operating profit that beat forecasts.
However it wasn’t all good news. Lloyds Banking Group posted a third-quarter underlying profit of £1.9 billion – down 3% year-on-year. Britain's largest retail bank also took a £1 billion charge relating to the compensation of customers mis-sold loan insurance. Shares in the U.K. lender opened sharply lower, but managed to recover some losses by the close of session. Italian banks also were among the big losers, as Banca Monte dei Paschi di Siena said it would cut 2,600 jobs, close 500 branches and shed businesses as part of a make-or-break effort to persuade sceptical investors to buy into a big capital increase.
In other news, shares of Twitter were trading in the green following speculation that Walt Disney has taken renewed interest in buying the social media company.
Investors also kept an eye out on falling oil prices on Wednesday as doubt lingered over OPEC and other oil producers ability to make a deal to curb production and stabilize oil prices.. Crude oil was down 1.5%, trading under $50 a barrel after the American Petroleum Institute reported an unexpected rise in US stockpiles on Tuesday afternoon. Us oil was on track to post a three-day losing streak, but has risen more than 20% since August.
Elsewhere, shares of Apple tumbled on Wednesday after the iPhone maker posted quarterly earnings that didn’t excite investors, along with revenue figures that were just shy of forecasts. Investors may have been disappointed that the tech giant’s projections for the current quarter weren’t more bullish. Apple posted its first annual revenue decline in 15 years, but projected a return to growth behind strong sales of its new iPhone 7.
The market weakness on Wednesday comes after a downbeat day on Tuesday, when worries about a string of lacklustre earnings and a drop in consumer sentiment sent major indexes lower. Despite that, overall market activity has been extremely quiet of late. Economic data have been in focus for investors as the Federal Reserve is schedule to meet next week. While the central bank is not expected to make any changes to its monetary policy during that meeting, it is largely expected to raise interest rates in December.
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