Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European shares show signs of recovery as Fed meeting awaited

Economy Jan 26, 2022 17:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, January 25, 2022. REUTERS/Staff

By Anisha Sircar and Shreyashi Sanyal

(Reuters) - European shares extended gains to record their best session since early December on Wednesday as recently bruised energy, travel and technology stocks recovered ahead of a U.S. Federal Reserve monetary policy meeting.

The pan-European STOXX 600 rose 1.7%, with all sectors in positive territory, marking the second straight session of gains after it fell by about 4% on Monday.

After being hit by concerns over conflict in Ukraine, oil & gas stocks rose 4.0%, their best day since November 2020 and leading gains, alongside travel and miners.

"Geopolitical tensions have resulted in a trimming of gains, but overall a wave of buying has swept over markets today," Chris Beauchamp, chief market analyst at online trading platform IG, said.

Technology stocks, representing many of Europe's growth-oriented firms, also bounced after coming under pressure from expectations of a hawkish Fed stance.

The U.S. central bank will update its interest rate plan at 1900 GMT after a two-day meeting, with markets priced for a first rate hike in March and three more quarter-point increases by the end of the year. [FEDWATCH]

"We expect the Fed to be clear about raising rates in March, and once we get past that, markets might be more reassured," said Nick Nelson, head of European equity strategy at UBS, adding that the focus would soon turn to fourth-quarter earnings in Europe, which are also set to be positive for markets.

Italian fashion group Tod's jumped 15.8% after sales rose by nearly 40% last year, its first increase after five years of declines and beating market forecasts.

Hygiene products group Essity fell 6%, after posting a bigger-than-expected fall in quarterly profit and saying it planned to raise prices further in the face of record high costs.

Italy's biggest debt recovery firm doValue gained 2.8% after saying it would aim to keep the amount of loans it manages stable at 160 billion euros ($181 billion) to the end of 2024.

BioNTech SE gained 6.3% after the company and Pfizer (NYSE:PFE) said that they had started a clinical trial to test a new version of their vaccine specifically designed to target the COVID-19 Omicron variant.

European shares show signs of recovery as Fed meeting awaited
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email