Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

European shares rebound from one-month low; ECB rate verdict up next

European shares rebound from one-month low; ECB rate verdict up next

By Ankika Biswas, Johann M Cherian and Ozan Ergenay

(Reuters) -European shares staged a recovery after a knee-jerk reaction to a high U.S. inflation reading on Wednesday, with investors turning their focus to the European Central Bank’s monetary policy decision on Thursday.

The pan-continent STOXX 600 closed 0.1% higher, after hitting a near one-month low intraday, with banks and the energy sector leading the charge, up 0.9% and 0.6%, respectively.

Germany and Italy’s benchmark indexes turned positive after dropping into the negative territory, while those of France and Spain came off their day’s lows.

Financial markets are now betting that the most influential central bank, the Federal Reserve, will delay cutting interest rates until September after data showed a higher-than-expected rise in U.S. consumer prices in March.

“It’s just the initial shock and then kind of optimism coming back in again, wondering, does it make a huge difference?,” said Morningstar’s European market strategist Michael Field, who thought the data likely cemented bets of the ECB cutting rates before the Fed.

Focus now shifts to the ECB’s policy meeting on Thursday, expected to hold rates steady. With both hawks and doves coalescing around a June rate cut, the meeting will likely centre around the bank’s growing confidence that conditions will be in place to lower rates in June.

“For the ECB, it’s not just weighing up whether inflation’s resurging, they’re also trying to balance not shifting us into recession and not leaving rates too high for too long,” Field added.

Technology stocks also rebounded from the red, after the sector led gains in early trade following upbeat quarterly revenue from Taiwan chipmaker TSMC.

However, rate-sensitive real estate sector shed 1.5% after the data, with Swedish stocks Balder and Sagax falling around 4% each.

Utilities also lost 1.3%. Italy’s Italgas lost 2.8% on a report of the company’s preliminary 4-5 billion euros offer for main domestic rival 2i Rete Gas, while Enel lost 2.2% after an explosion at a hydroelectric power plant in northern Italy on Tuesday.

Barry Callebaut jumped 11% after the chocolate maker reported upbeat half-yearly revenue, easing fears that jumping cocoa prices and other inflationary pressures might hit demand.

Tesco climbed 3.3% after Britain’s biggest retailer forecast a further rise in profit.

Europe’s largest copper producer Aurubis advanced 4.9% after Metzler Capital Markets upgraded its rating to “buy” from “hold”.

French payments services firm Edenred lost 4.2% after Jefferies initiated coverage with “underperform”.

(Reporting by Johann M Cherian, Ozan Ergenay and Ankika Biswas; Editing by Eileen Soreng, Shinjini Ganguli, Elaine Hardcastle)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts