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* UBS ends at a two-month low
* Travel & leisure index hits record high
* Global markets in holding pattern ahead of Fed
(Updates to market close)
By Sruthi Shankar and Ambar Warrick
April 27 (Reuters) - European stocks ended a shade lower on
Tuesday as optimism over strong British earnings was offset by
UBS disclosing a hit from dealing with U.S. investment firm
Archegos, while travel stocks scaled record highs on hopes of a
post-COVID rebound.
The pan-European STOXX 600 index slipped 0.1%, with
investors holding off big bets ahead of a policy decision by the
U.S. Federal Reserve on Wednesday. The bank is widely expected
to maintain easy monetary policy.
Oil major BP rose 0.4% after its first-quarter profit
soared and it planned share buybacks, while Asia-focused lender
HSBC gained 4.2% after it reported an upbeat quarterly
profit.
Meanwhile, UBS fell 2.0% to a two-month closing low
as it took an unexpected $774 million hit from Archegos,
overshadowing a forecast-beating 14% rise in quarterly net
profit.
Still, markets were caught in a tight trading range as
investors watched for any clues on the timing of the Fed's
eventual policy tightening, which the bank has said will depend
on employment and inflation levels.
"Ultimately, the exact timing of tapering will be a
judgement call by the Fed," Unicredit analysts said.
"They will likely want to see a sequence of better data on
jobs and economic activity that substantially reduces the 'gaps'
to pre-crisis levels, reinforced by a sustainable improvement in
the health situation."
Global stocks have hit record highs recently on optimism
about a economic recovery as the pace of vaccination picked up
across developed economies.
European travel stocks shared this sentiment,
surging 3.0% to close at a record high. Bank stocks also
ended higher on upbeat earnings, as well as support from
increasing euro zone bond yields.
About a quarter of STOXX companies are set to publish
earnings this week. Among the 17% that have reported so far, 65%
exceeded profit estimates, according to Refinitiv IBES data.
Sweden's Evolution Gaming Group jumped 14.5% to
the top of the STOXX 600, as it reported a 150% jump in
quarterly core earnings as the COVID-19 pandemic boosted demand
for online casino games.
Danish freight forwarder DSV Panalpina surged 6.8%
after it agreed to buy the logistics division of Kuwait's
Agility Public Warehousing Co in a deal worth $4.1
billion.
French diagnostics group Biomerieux fell 6.9% to
the bottom of the STOXX 600 after it halved its sales outlook
for the first half of the year as the easing pandemic looked to
cut demand.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak
Dasgupta and Bernadette Baum)
