European stocks traded higher on Tuesday after China unleashed a swath of stimulus measures including cuts to its benchmark interest rate to put the economy out of its deflationary funk and back towards the government’s growth target.
Markets gave up some early gains after a survey showed German business morale fell for a fourth straight month in September, adding to concerns the euro zone’s biggest economy may have tipped into recession.
The pan European STOXX 600 was up 0.6 percent at 519.58 after rising 0.4 percent on Monday despite weak business activity readings from the euro zone and the U.K.
The German DAX climbed 0.6 percent, France’s CAC 40 rallied 1.4 percent and the U.K.’s FTSE 100 was up 0.3 percent.
The British pound gained further against its peers after the Bank of England (BoE) Governor Andrew Bailey said he doesn’t expect a return to low rates.
Bailey said he was “very encouraged” by the downwards path of inflation and therefore expects interest rates will fall gradually.
In corporate news, Dulux paint maker AkzoNobel rose about 1 percent after it announced plans to cut 2,000 jobs globally.
Miners Anglo American, Antofagasta and Glencore surged 5-7 percent as copper prices hit a two-month high supported by China’s measures.
China-linked luxury companies such as LVMH, Kering and Hermes International surged 4-5 percent in Paris.
Energy giant BP Plc gained 1 percent and peer Shell added half a percent as oil prices rose on signs of escalating Middle East tensions and a weaker dollar.
Engineering firm Smiths Group slumped 7.4 percent after its FY24 results missed estimates.
CRH, a provider of building materials solutions, fell 1 percent after announcing a new CEO.
Johnson Matthey rallied 2.1 percent. The chemicals and sustainable technologies company said the second tranche of share buyback, announced in July, of up to 125 million pounds will commence today.
TotalEnergies advanced 1.4 percent. The integrated energy company said it has signed a Heads of Agreement (HoA) with South Korea’s HD Hyundai Chemical to supply 200,000 tons of LNG per year for 7 years starting from 2027.
Nordex SE gained 1.5 percent. The German wind turbine maker announced that it has been tapped to supply and install 41 turbines for a 147.6-MW wind project in Poland.
Travel firm TUI AG rose half a percent after reaffirming its full-year earnings guidance.
Business News
European Shares Inch Higher On China Stimulus
2024-09-24 09:45:38
