European stocks climb amid earnings, before Fed

GMT 13:46 2015 Wednesday ,29 July

Arab Today, arab today European stocks climb amid earnings, before Fed

European stocks
London - AFP

Europe's main stock markets rose on Wednesday, as traders reacted to a batch of company earnings updates ahead of the Federal Reserve's latest policy statement.

London's benchmark FTSE 100 index gained 0.78 percent to stand at 6,606.30 points around midday in the capital.

Frankfurt's DAX 30 won 0.17 percent to 11,193.18 points and the CAC 40 in Paris advanced by 0.33 percent in value to 4,993.92 compared with Tuesday's close.

The euro dipped to $1.1050 from $1.1058 late in New York on Tuesday.

"European equities are trading higher today seeing some follow-through buying after yesterday's impressive rebound," said Markus Huber, senior analyst at brokers Peregrine & Black.

"Firmer and calmer markets in China overnight and solid earnings reports... are giving markets" a boost, Huber said, adding that all eyes were on the Fed.

Shanghai stocks recovered Wednesday after plunging more than 11 percent in the past three sessions but there were mixed results for other Asian markets, with some unable to sustain an early rally.

Buyers were also given a healthy lead from Wall Street, which climbed Tuesday for the first time after five sessions of losses as dealers await the outcome of the US Federal Reserve policy meeting later in the day.

The Federal Open Market Committee outcome "is going to be very much in focus for all asset classes on a global basis today even though there's no real expectation that we will see any change in the headline rates," said Nour Al-Hammoury, chief market strategist at ADS Securities.

"However many are expecting the Fed to include the latest developments from China and their interpretation of this will be interesting to hear."

While the Fed's policy committee is not expected to announce a rate cut Wednesday, dealers will pore over its latest statement to see if it gives any clues about when it will begin a lift-off, with expectations for either September or December.

- Better for Barclays -

On the corporate front, shares in Barclays rose two percent to 285.4 pence after the troubled British bank said it had increased net profits by 43 percent in the first half as cost-cutting and higher revenue offset provisions for settling a series of scandals, including the rigging of foreign exchange.

Volkswagen, which recently pipped Toyota for the world's biggest automaker title, slid 2.31 percent to 186.4 euros after the German auto giant lowered its global sales forecast for 2015, citing weaker demand from China and other key markets.

Peugeot soared 5.62 percent to 18.79 euros, topping the CAC 40, after the French carmaker bounced back from losses to post a net profit in the first half.

Total gained 1.05 percent to 43.67 euros after the French oil giant announced better-than-expected net profits.

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