Europe midday: Shares still higher on less hawkish Fed stance

European markets were still higher by midday on Thursday amid an absolute deluge of corporate earnings as investors were cheered by slightly less hawkish messaging from the US Federal Reserve, which lifted rates on Wednesday.

The pan-European Stoxx 600 was up 0.48% with most major regional bourses up.

The Fed on Wednesday implemented a widely expected second consecutive 75 basis point interest rate hike, as it seeks curb soaring inflation while truing to avoid triggering a recession.

Chairman Jerome Powell held his hawkish stance but the central bank dropped guidance on the scale of the next rate hike and acknowledged that “at some point” it will be appropriate to slow the pace of increases.

In equity news, Barclays shares fell after the UK bank saw a fall in second-quarter profit after taking a substantial provision relating to a costly trading error in the U.S.

Danish wind turbine manufacturer Vestas climbed 14%, while French life insurer Scor fell after swinging to a first-half loss.

Medical technology group Smith & Nephew slid after it posted a drop in first-half pre-tax profit.

"Smith & Nephew struggled during the pandemic as elective surgeries were cancelled and demand for its hip and knee implants fell. As we emerge from the pandemic then in theory it should have a big backlog of business to get through, but supply chain and execution issues in its orthopaedics business are holding it back," said AJ Bell investment director Russ Mould.

"Recently appointed CEO Deepak Nath really needs to sort these problems out fast so the company doesn’t miss out on a significant market opportunity."

Reporting by Frank Prenesti at Sharecast.com