European Markets See Mixed Results Amid Energy Slump and Stimulus Moves

European markets faced mixed outcomes as the STOXX 600 closed slightly lower, impacted by declining energy stocks and SAP's price-fixing investigation. The oil and gas sector led the losses, while China's stimulus measures spurred some gains in luxury stocks. Key interest rate cuts and notable stock surges highlighted the trading day.

Europe's STOXX 600 closed slightly lower on Wednesday, finishing 0.1% lower after two consecutive sessions of gains. Energy stocks were notably impacted, as crude oil prices dropped over 1%. Germany's SAP saw a 2.4% decline following news of a U.S. investigation into price-fixing claims, further influencing market sentiment.

The oil and gas sector led sector losses, falling 1.7%, as investors doubted whether China's latest stimulus measures could significantly boost the economy and fuel demand. Despite this, some sectors, like French luxury stocks, experienced gains spurred by the People's Bank of China's unexpected stimulus package.

In other market movements, the Swedish central bank cut its key interest rate to 3.25%, and Valmet Oyj soared 11.7% with a major order win in Brazil. Bavarian Nordic also rose 3.9% after securing a government contract for its vaccines. HSBC is now predicting that the European Central Bank will cut interest rates by 25 basis points at every meeting through April next year.

(With inputs from agencies.)