European shares are set for a mixed start today as investors wait to see if the US Federal Reserve will cut interest rates to ease the pain of endless transatlantic profit warnings.
German chemical and pharmaceutical firm Bayer became the latest to say its second-quarter profit was likely to be well below last year, and it forecast a profit decline for the full year.
Bayer - whose warning had been rumored for several days and was weighing on its stock - blamed the weak US market, slow growth in Europe and Asia, and raw material costs. Europe's chemical sector has already taken a knock after a warning from leader BASF last Thursday.
But it was the US central bank that was hogging investors' radar screens.
"It's waiting for the Fed, and it could be a rather tedious wait," said ING Charterhouse director Mr James Dewhurst.
Citibank in Frankfurt indicated the Euro Stoxx 50 index would open around 4,143 points - little changed from Tuesday's close. The German DAX was indicated at 5,832 points, slightly lower.
US stock futures were little changed. A recovery in Wall Street should also help sentiment in Europe as the market waits to see what the US central bank will do.
Expectations are coming in more toward a 25 basis point cut, which might be a little bit of a disappointment," Mr Dewhurst said.