European Markets Rise; Earnings Reports Ease Fed-Related Pressure
European stock markets edged higher in Wednesday's trading, even as markets remained overshadowed by Middle East tensions and concerns regarding Federal Reserve interest rate hikes. The STOXX 600 index rose 0.1%, Germany's DAX gained 0.2%, France's CAC 40 climbed 0.3%, and the UK's FTSE 100 added 0.4%.
Market gains were supported by solid corporate earnings reports. Standard Chartered rose 3% after raising its revenue target, while UBS and CaixaBank posted profits that exceeded expectations. Kering shares also surged 9% after the decline in Gucci sales proved smaller than anticipated.
EssilorLuxottica shares rose 2.2%, Rio Tinto gained 2.5% after posting its highest first-half profit in four years, and GSK raised its annual margin outlook. These performances helped offset pressure from high bond yields.
Investors remain cautious ahead of the Federal Reserve's interest rate decision. The Fed is expected to hold rates steady, though the market still sees a roughly one-in-three chance of a surprise hike or a more hawkish statement.
Sentiment was also weighed down by a rise of over 3% in Brent crude prices following a flare-up in the Middle East conflict. Meanwhile, European technology stocks weakened in the wake of a global semiconductor sell-off, leaving the market outlook potentially volatile.
(asd)
Source: Newsmaker.id
