News Maker 23

Newsmaker.id – European stock markets closed higher on Wednesday (Sept. 16), recovering from pressure in the previous session as oil prices and global bond yields eased. The pan-European STOXX 600 index rose 0.5% to end at 637.09, having touched a three-month low the day before.

Gains were also seen across major regional exchanges. Germany's DAX rose approximately 0.5% to 25,559, while France's CAC 40 climbed 0.6% to 8,141. In the UK, the FTSE 100 rose 0.3% to close at 10,688.47, while the FTSE 250 surged 1.1%.

Market sentiment improved after oil prices halted their sharp rally and European bond yields began to retreat from multi-year highs. The yield on the 10-year German Bund fell about 3 basis points to 3.504%, offering investors some room to return to risk assets.

The travel and leisure sector was among the top performers, rising around 1.2% as lower oil prices alleviated concerns regarding fuel costs. Conversely, energy stocks came under pressure after oil prices weakened due to a rise in US crude inventories.

Several stocks posted sharp gains, including Soitec, which surged 13.4% after JPMorgan upgraded its recommendation, and Barratt Redrow, which rose 11.7% after reporting better-than-expected profits. Pan African Resources gained 5.5%, and Babcock International rose 2.8%.

Investor focus has now shifted to the Federal Reserve's interest rate decision. The market is pricing in a roughly 93% probability of a 25-basis-point interest rate hike; consequently, comments from Fed Governor Kevin Warsh regarding the future policy trajectory are expected to serve as a key catalyst for global markets in the next trading session.

Source: Newsmaker.id