European stocks advanced on Wednesday, with China stimulus hopes and encouraging earnings boosting investor sentiment ahead of the Federal Reserve’s interest-rate decision later in the day.
A measure of China’s manufacturing activity slipped to a five-month nadir in July, fueling expectations for more Chinese stimulus.
Meanwhile, headline annual inflation in the euro zone unexpectedly rose to 2.6 percent in July from 2.5 percent in June, according to Eurostat’s flash estimate.
The pan European STOXX 600 climbed 0.8 percent to 518.14 after gaining half a percent on Tuesday.
The German DAX edged up 0.4 percent, France’s CAC 40 rallied 1.1 percent and the U.K.’s FTSE 100 surged 1.4 percent.
In corporate news, ASML rallied 5.5 percent after Reuters reported the Biden administration planned to exempt chip equipment makers from Japan, the Netherlands and South Korea from upcoming export restrictions.
HSBC Holdings jumped 4 percent in London. The lender announced a share buyback of up to $3 billion after reporting a stable first-half profit.
Mining firm Ferrexpo soared 12 percent after half-year profits more than doubled.
Ricardo climbed 4 percent. The engineering and environmental consulting firm reported trading in line with expectations for FY23/24.
Commercial landlord Shaftesbury Capital added 2.2 percent on reporting robust business performance in its interim results.
Taylor Wimpey rose 1.3 percent. The real estate group has raised its outlook for house sales this year to the top end of a previous guidance.
Pharma giant GSK fell 1.5 percent after its second-quarter profit attributable to shareholders fell to 1.17 billion pounds from last year’s 1.62 billion pounds.
Yogurt maker Danone jumped 4.4 percent in Paris after revenue rose more than expected in the second quarter.
Airbus, the world’s largest plane maker, surged 3.3 percent while jet engine and equipment maker Safran fell 1.6 percent after reporting their half-year results.
Schneider Electric, a global leader in energy management and automation, gained nearly 3 percent after reporting better-than-expected H1 earnings and raising its outlook.
Adidas added 1 percent. The German sportswear giant confirmed its preliminary second-quarter figures and backed its sales and earnings guidance for the year.
Healthcare group Fresenius rallied 2.2 percent after beating Q2 view and confirming FY24 outlook.
TeamViewer surged more than 10 percent. The provider of remote connectivity solutions reiterated annual revenue guidance after Q2 revenue beat expectations.
Medical technology company Siemens Healthineers plunged 6.4 percent after missing Q3 sales and earnings forecasts.
Business News
European Shares Rally As Earnings Bring Cheer
2024-07-31 09:38:54
