European stocks fall from 20-month high

On Wednesday European stocks fell from a 20-month high as investors digested poor overnight news on Apple Inc. earnings and U.S. car sales, while the dollar strengthened before a Federal Reserve meeting where policy makers will need to mull over another soft patch in the U.S. economy.

Suppliers of Apple were among the biggest losers in the Stoxx Europe 600 Index. Dialog Semiconductor Plc dropped as much as 6.2 percent before trimming losses. Industrial metals fell, pushing down commodity producers for a third day. A bond rally in peripheral Europe was led by Italy. Closed markets in Japan and Hong Kong curtailed trading in Treasuries, which weakened at the start of European hours.

Disappointment over Apple results managed to offset upbeat company earnings in Europe that has its mirror in growth data and the lowest unemployment rate in Germany since reunification. Also contributing to the tentative mood: the Federal Reserve will meet later and its statement will be parsed for clues on its tightening path. The Fed’s monetary policy hinges on whether President Donald Trump can meet fiscal stimulus pledges that will ignite inflation.

Euro Stoxx 600 fell 0.2 percent as of 10:37 a.m. in London, with losses led by miners. Futures on the Nasdaq 100 gained 0.1 percent. Futures on the S&P 500 retreated 0.2 percent after the underlying gauge rose 0.1 percent Tuesday.

Asian stocks outside Japan declined as Australian shares dropped before the U.S. Federal Reserve’s rate decision. Equity markets in Japan, South Korea and Hong Kong are closed Wednesday for holidays. The MSCI Asia Pacific excluding Japan Index fell 0.2 percent as of 3:55 p.m. in Hong Kong, erasing earlier gains.

Oil rebounded 1.1 percent following Tuesday’s 2.4 percent decline. Crude had dropped to the lowest level in more than a month after Saudi Arabia signaled it’s faring better than expected with low prices. Gold fell 0.2 percent to $1,254.17, while copper futures declined 2.2 percent.