Europe open: Shares edge ahead despite weak US earnings

European shares opened higher on Wednesday, despite disappointing US tech earnings results overnight.

The pan-European Stoxx 600 defied expectations to rise 0.07% in early deals. US futures were lower after Google-owner Alphabet reported weaker-than-expected advertising sales and Microsoft missed expected revenue forecasts.

In the UK, the FTSE 100 was down 0.6% as new prime minister Rishi Sunak prepared to hold his first cabinet meeting amid suggestions he may delay the government’s planned fiscal statement on October 31.

Investors are also eyeing how aggressively central banks may raise rates, with expectations of a 75 basis point increase from the Eurpean Central Bank on Thursday, while the US Federal Reserve is also expected to raise by the same amount next Wednesday.

In equity news, shares in troubled French care home operator Orpea slumped by 28% after resuming trading. The company, hit by accusations of malpractice at its retirement homes, said it would unveil a new strategy next month.

Shares in Dutch brewer Heineken fell as third quarter beer sales rose by 8.9%, missing analysts’ expectations for 12%. Danish rival Carlsberg was also lower.

Reporting by Frank Prenesti for Sharecast.com