European Stocks Rise Sharply Ahead of Fed’s Announcement

November 7, 2018
european stocks close

By Investors Hub

European stocks have risen sharply on Wednesday as investors digest the U.S. midterm election results and looked ahead to the Federal Reserve’s monetary policy announcement on Thursday.

The U.S. election results came in line with expectations, with Democrats seizing the House majority from President Donald Trump’s Republican Party, while Republicans retained control of the Senate.

While the German DAX Index has advanced by 0.9 percent, the French CAC 40 Index and the U.K.?s FTSE 100 Index are both jump by 1.3 percent.

The British pound has risen for the third straight session after reports that a Brexit deal could be reached by the end of November.

British infrastructure group Balfour Beatty has moved notably higher after it secured a place on two major highway projects.

Homebuilder Persimmon has also advanced. Chief Executive Jeff Fairburn has been asked to leave the company after a row over his 75 million pound pay award.

Spanish banks BBVA, Santander and Sabadell have also moved to the upside after the Supreme Court ruled that lenders were not required to pay stamp duty on mortgages.

Dutch supermarkets and eCommerce company Ahold Delhaize N.V. has soared. The company increased free cash flow guidance for 2018 to at least 2.0 billion euros and said it is firmly on track to realize at least 5 billion euros in net consumer online sales by 2020.

Meanwhile, retailer Marks & Spencer Group has tumbled after the company warned of challenging trading conditions for fiscal 2019.

ITV shares have also slumped. The media firm has warned of a softening in advertizing revenue in the final three months of the year.

BMW Group shares have also fallen after the automaker’s third quarter net profit declined by nearly 24 percent year-over-year to 1.405 billion euros due to higher research and development expenses.

Adidas has also moved to the downside after the sports shoes, clothing and accessories giant lowered its sales growth guidance for the year.

In economic news, euro area retail sales held unchanged in September after growing in the previous month, preliminary data from Eurostat revealed. Retail sales were flat sequentially, while economists expected a modest 0.1 percent gain.

Elsewhere, U.K house price inflation eased sharply in October to its lowest level since March 2013, survey data from IHS Markit and Lloyds Banking Group unit Halifax showed.

The Halifax house price index rose 1.5 percent year-on-year in the three months to October, which was sharply slower than the 2.5 percent increase in September. Economists had forecast a 1.3 percent climb.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

Leave a Reply

US Shares Gain Momentum as Midterms Excite Investors
Previous Story

US Shares Gain Momentum as Midterms Excite Investors

Chinese Stocks Fall as Investors Focus on US Midterm Polls
Next Story

Chinese Stocks Fall as Investors Focus on US Midterm Polls

Latest from Economy

Don't Miss