European stocks positive on earnings
European stocks may be finally breaking out of their torpor after ending little changed for four straight days.
On Wednesday earnings announcements from companies including LVMH Moet Hennessy Louis Vuitton SE, PSA Group and and Rightmove Plc helped push the Stoxx Europe 600 Index up 0.5 percent at 10:09 a.m. in London. The moves in French companies took the CAC 40 Index up 1.5 percent, the most among western-European markets.
European equities may finally be getting some direction, after the Stoxx 600’s rebound stalled since the gauge hit a one-month high last week. The index has been particularly volatile in intraday trading amid thin volume, mixed earnings reports, and speculation about central-bank stimulus. The Federal Reserve is forecast to keep interest rates unchanged on Wednesday, while the Bank of Japan is set to expand its stimulus program. The Fed’s decision will come after the close of European markets.
The Stoxx 600 closed on Tuesday 1.5 percent away from its June 23 level, the day of the U.K. vote on European Union membership, while equities in the U.S. and Asia have already recovered. President Mario Draghi said last week the European Central Bank will consider increasing stimulus when it has a clearer picture of the Brexit impact. Lenders have suffered the most since the referendum, and regulators will publish their latest health check on Friday.
Asian stocks climbed for a third day as Japanese shares rallied on a report that the government is preparing a stimulus package worth more than 28 trillion yen ($265 billion). Chinese equities in Shanghai tumbled the most in six weeks. The MSCI Asia Pacific Index added 0.2 percent to 134.84 as of 4:10 p.m. in Hong Kong. The Topix index rose 1.1 percent as Prime Minister Shinzo Abe, speaking in the southern city of Fukuoka on Wednesday, said the measures would be compiled next week, Kyodo News reported.
This article was compiled by Valletta Fund Management Limited, a member of the BOV Group.Valletta Fund Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000 Freephone: 80072344. E-mail: infovfm@bov.com. Website: www.vfm.com.mt. Valletta Fund Management Limited is licensed by the MFSA.