Europe midday: Shares rally ahead of US CPI

By

Sharecast News | 10 Aug, 2022

European shares rallied by midday on Wednesday ahead of key US inflation data, with strong corporate results pulling the Stoxx 600 above the flatline.

The pan-European benchmark was up 0.08% Investors are fretting over the implications a hot US consumer price index would have for future interest rate rises.

“We're seeing plenty of apprehension ahead of the US inflation report on Wednesday, with Asia in the red and Europe following suit,” said OANDA analyst Craig Erlam.

“It's impossible to get away from the fact that the inflation report has held the markets back this week. There's clearly a desperate desire to be more optimistic about the outlook; that's evident from the scale of the recovery already seen in equity markets despite there being seemingly little to celebrate.”

In Germany, the annual inflation rate slightly declined in July to 7.5% from 7.6 in the previous month, according to official estimates released.

Among equity stocks, shares in Ahold Delhaize gained 7.8% after the the Dutch company said it was postponing plans for an initial public offering of its non-food retailer, Bol.com, because of unfavourable market conditions.

UK insurer Aviva was up 9% as it said it planned to returned more cash to investors after posting a better-than-expected 14% rise in first-half operating profit.

Wind turbine maker Vestas also gained 9%, despite reporting a bigger-than-expected second-quarter operating loss hit by higher costs.

Quilter - formerly Old Mutual Wealth Management - fell after reporting a decline in first-half assets under management and administration on Wednesday, but a rise in profits.

Reporting by Frank Prenesti at Sharecast.com

Last news