Europe midday: Shares hold slim gains on upbeat corporate news

European stocks were still higher at midday on Thursday, driven by upbeat corporate news and positive assessment of the US economy by the Federal Reserve.

The pan-European Stoxx 600 index was up 0.16% with all major regional bourses higher.

“European markets have opened modestly higher after a mixed session in Asia as positive momentum tries to carry forward from Wall Street where the Dow is on track to snap its eight-week losing streak,” said Interactive Investor head of markets Victoria Scholar.

“The Fed’s minutes were hawkish but as expected with policymakers sounding optimistic and in control. Having hiked its benchmark federal funds rate by half a percentage point this month, it looks like two further 50 basis point hikes in quick succession are likely followed by further 25 basis point hikes in autumn.”

Scholar added that an upbeat Fed assessment on the state of the US economy as well as talk of ‘expedited’ tightening which could leave room for flexibility and even a possible pause later this year helped support risk-on sentiment in the markets.

In equity news, shares in Intermediate Capital Group rose as the asset manager reported better-than-expected results.

German telecoms group Freenet gained after a broker upgrade to ‘buy’ from Goldman Sachs.

Auto Trader shares were up as the company reported surging profits.

UK water company United Utilities fell after the firm reported no increase in average household bills for the full year.

Shares in UK renewables technology firm Johnson Matthey slid 7% as it said current-year operating profits would be in the lower half of consensus forecasts and announced the sale of its battery business.

BT Group shares fell on news that the UK government was set to probe Altice UK’s stake in the telecoms group and JD Sports Fashion stock was lower after executive chairman Peter Cowgill left with immediate effect.