Europe open: Shares rise amid corporate results, German data
European shares rose at the open on Wednesday amid another dump of corporate earnings and a smaller-than-expected fall in German industrial output.
The pan-European Stoxx 600 was up 0.32% at 515.64, with all major regional bourses higher and Britain’s FTSE 100 pushing to another intra-day record of 8,350.
Investors will be turning their attention to a rate decision from the Bank of England on Thursday, with economists backing no change. Eyes will be on BoE governor Andrew Bailey for any hint on when rates may start to come down.
In economic news, industrial output in Germany fell in March, according to data released on Wednesday by the Federal Statistical Office, Destatis, though it wasn't as big a drop as expected after figures for the previous month were revised lower.
Industrial production fell by 0.4% over the month, following a revised 1.7% increase in February, which was changed from the initial estimate of +2.1%. Nevertheless, economists were expecting a drop of 0.6% in March.
However, the three-month moving average – which smoothes out monthly volatility – was 1% higher in the January to March period than the previous three months.
Brent crude fell below $83 a barrel after the American Petroleum Institute reported a weekly inventory build of 0.5m barrels against expectations of a 1.4m decline.
“Weakness in the oil price will come as welcome news to those leading the fight against inflation as thoughts start to turn towards tomorrow’s Bank of England interest rate decision. There’s little expectation of an immediate cut but much of the recent market strength comes on back of rising hopes for the first cut in the summer,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
In equity news, shares in Anheuser-Busch Inbev rose more than 4%, after strong first-quarter results.
Shares in Guinness brewer Diageo were up on the sentiment and received a further boost when Tim Martin, boss of the UK pub chain Wetherspoons, said the famous Irish stout had now become a favourite among younger drinkers.
BP, Shell and Enel were all lower on the weaker oil price.
Reporting by Frank Prenesti for Sharecast.com