European Shares See Modest Gains Ahead Of Key Fed Decision

Business

European stocks were seeing modest gains on Wednesday ahead of the Federal Reserve’s interest-rate decision later in the day.

Markets have already priced in a 75-bps rate hike. The accompanying statement and Fed Chair Jerome Powell’s press conference may attract greater attention than the Fed’s rate decision.

The pan European Stoxx 600 rose 0.4 percent to 427.86 after finishing marginally higher on Tuesday.

The German DAX was little changed after a survey showed the country’s consumer sentiment will hit a fresh low in August.

GfK’s forward-looking barometer fell to -30.6 from revised -27.7 in July as fears of an impending recession and high inflation dampened economic and income expectations. The score was forecast to fall to -28.9.

France’s CAC 40 index gained half a percent despite a measure of French consumer confidence weakening for the seventh successive month in July to reach its lowest level in just over nine years.

U.K.’s FTSE 100 was up half a percent following encouraging earnings updates from the likes of Lloyds Bank and Reckitt Benckiser.

Reckitt Benckiser surged 5.2 percent after the consumer goods firm swung to interim profit.

Lender Lloyds Banking Group jumped 4.2 percent after hiking its dividend and full-year profitability forecast.

Rio Tinto tumbled 3.7 percent after the miner reported a 29 percent drop in first-half profit.

French food company Danone fell about 0.7 percent despite lifting its FY22 sales growth view.

LVMH gained 1 percent after the world’s top luxury group reported better-than-expected second-quarter sales.

German sportswear brand Adidas slumped more than 5 percent after cutting its FY22 outlook.

Deutsche Bank tumbled 4.3 percent. The bank has warned of economic risks after posting a better-than-expected 51 percent rise in second-quarter profit.

Chemical company BASF declined about 1 percent despite lifting its guidance for full-year revenues.

Credit Suisse Group AG fell over 1 percent after the Swiss bank posted its third straight quarterly loss.

UniCredit jumped 5.7 percent. The Italian lender raised its 2022 outlook after a strong second quarter.

Source: Read Full Article