Europe midday: Stocks push higher; LVMH surges but Deutsche Bank slumps

European stocks rose on Wednesday as investors welcomed news of a bumper stimulus package in Japan, ahead of the Federal Reserve’s latest policy announcement.

At midday, the benchmark Stoxx Europe 600 index was up 0.5%, Germany’s DAX was 0.8% higher and France’s CAC 50 was up 1.2%.

At the same time, oil prices were weaker, with West Texas Intermediate down 0.5% at $42.71 a barrel and Brent crude 1.1% lower at $44.36.

Lee Wild, head of equity strategy at Interactive Investor, said: “Reports of Japanese Prime Minister Shinzo Abe's mega-stimulus package have stolen attention from the Federal Reserve ahead of tonight's US interest rate announcement and policy statement. Abe's $265 billion attempt to get the local economy going again is a bold move, and could be just the catalyst that risk assets like equities need to trigger another move higher Wednesday.”

PM Shinzo Abe said the Japanese government would deliver a stimulus package of Y28tn, half of which would comprise fiscal measures. The news comes ahead of the Bank of Japan’s policy announcement on Friday.

Investors were also looking ahead to the Fed’s rate announcement later on Wednesday, although it is widely expected to keep interest rates unchanged.

Corporate news came thick and fast. LVMH shares surged after the luxury goods maker’s first-half profit met expectations, while French car maker Peugeot was sharply higher as it posted a big jump in first-half net profit to €1.2bn.

Banco Santander was in the black after the lender’s second-quarter profit came in better than expected and it reaffirmed its full-year outlook.

Bayer was on the front foot after the Germany chemical and pharmaceutical firm reported a 5.7% rise in second-quarter profit.

French hotels company AccorHotels edged up as it emerged it was in talks to buy concierge service provider John Paul.

UK housebuilder Taylor Wimpey racked up healthy gains as it posted higher profit and revenue for the first half and said Brexit had not impacted its trading.

Broadcaster ITV rose sharply as it hiked its interim dividend by 26% and reported growth in first-half revenues.

ARM Holdings was just a touch higher after the chip designer posted an increase in second-quarter profit and revenue and upped its interim dividend by 20%.

On the downside, Deutsche Bank lost ground after it said second-quarter net income tumbled 98% from the previous year.

Chemicals producer BASF was under the cosh as its second-quarter profit fell.