European Shares Rally As Fed Downplays Recession Risks

European shares hit nine-week highs on Thursday as investors reacted to the Fed’s interest-rate decision and awaited the ECB rate announcement later in the day.

Overnight, the Federal Reserve raised interest rates by 25 basis points, as widely expected, and downplayed the prospect of a U.S. recession this year.

The European Central Bank looks all but certain to hike the deposit rate by 25 bps later in the session, but there is considerable uncertainty about the central bank’s guidance for September’s monetary policy.

The pan European STOXX 600 was up nearly 1 percent at 470.08 after losing half a percent on Wednesday.

The German DAX climbed 0.8 percent, France’s CAC 40 jumped 1.3 percent and the U.K.’s FTSE 100 was up 0.3 percent.

Nestle gained 1.7 percent after the Swiss food and beverages giant raised its full-year organic sales outlook.

British retail group Frasers rallied 2 percent after pretax profit more than doubled for fiscal 2023.

Mining giant Anglo American rose over 1 percent despite missing earnings estimates.
Centrica, the owner of British Gas, surged 5.4 percent after it delivered strong operational and financial performance in the first half of 2023.

Indivior slumped 5.8 percent. The pharmaceutical firm revealed a profit for the second quarter that decreased from last year.

BT Group, Britain’s biggest broadband and mobile provider, declined 1.3 percent despite reiterating its full-year outlook.

Shell lost 1.5 percent after reporting its lowest quarterly profit in almost two years.

Barclays declined 3.8 percent after the bank said it expects to earn less interest in the U.K. due to stubborn inflation and high interest rates.

Aircraft manufacturer Airbus fell 2.5 percent in Paris after reporting a fall in net profit in the first half of this year.

Ipsen rallied 3.5 percent after the pharmaceutical firm upgraded its 2023 outlook.

Lender BNP Paribas jumped almost 4 percent after an announcement that it will buy back shares starting next month.

Industrial gases firm Air Liquide added 1.4 percent as it reported a 32 percent jump in first-half net profit.

Jet engine maker Safran climbed 2.5 percent after raising its full-year outlook.

German automaker Volkswagen tumbled 3.7 percent after it cut 2023 deliveries outlook.

Peer Mercedes-Benz Group added 1.5 percent after lifting its full-year guidance.

Aixtron soared nearly 13 percent after the semiconductor-equipment company raised its outlook for 2023 revenue and orders in light of strong demand.

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