European stocks rise on optimism of slow rate hike
2023.01.11 04:08
European stocks rise on optimism of slow rate hike
By Kristina Sobol
Budrigannews.com – Bayer (OTC:) helped lift European stock prices on Wednesday. and LVMH, bolstered by hopes of less aggressive U.S. interest rate hikes and optimism regarding China’s reopening.
By 08:18 GMT, the pan-regional gained 1%.
On risk appetite fueled by expectations of softer U.S. inflation print this week and relief following Federal Reserve Chair Jerome Powell’s refusal to comment on U.S. rate policy, Wall Street ended higher on Tuesday, and European stocks cut some losses.
Bets on a less aggressive Fed and European Central Bank tightening had increased following signs of wage inflation slowing last week.
Tech stocks that are sensitive to rates rose 0.8% on Wednesday.
Energy stocks rose 1.0 percent, while miners rose 1.7 percent, as commodity prices rose on optimism regarding China’s reopening, the world’s largest consumer.
Britain’s second-largest supermarket group, Sainsbury’s, fell 2.7% among individual movers after CEO Simon Roberts said he was cautious about the consumer backdrop, despite forecasting a profit for the full year at the upper end of its guided range.
After Bloomberg reported that activist investor Bluebell is advocating for the German pharmaceutical company’s dissolution, shares of Bayer increased by 2.1%.
Deliveroo lost 4.4% as a result of J.P.Morgan’s ratings cut.
After putting his daughter Delphine in charge of Christian Dior, one of the company’s most successful labels, Chairman and CEO Bernard Arnault tightened his family’s grip on the luxury goods empire, which helped LVMH gain 0.7%.
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