Europe midday: Shares up as the world watches central bankers
European shares held their ground at midday on Monday as investors eyeing central bank policy decisions around the world.
The pan-European Stoxx 600 index was up 0.52%. Investors will be eyeing central bank policy meetings in the US, Australia and UK this week.
Asian markets were mixed as weak Chinese economic data weighed on sentiment. Japanese stocks surged after the unexpectedly comfortable election victory for Prime minister Fumio Kishida triggered expectations of more fiscal stimulus.
However, China reported factory activity shrinking for the second month, while German retail sales dropped 0.9% year/year versus forecasts of a 1.8% rise.
The US Federal Reserve is expected to announce a tapering of asset purchase, the Bank of England is tipped to lift rates, Norway has signalling its second hike of the year and the Reserve Bank of Australia will be watched to see if it revises guidance after last week letting its 3-year bond yield trample over its 0.1% target against a backdrop of an overheated housing market.
In equity news, Barclays Bank shares fell as chief executive Jes Staley stood down in response to the findings of a probe by UK financial regulators into his characterisation of his relationship with convicted sex offender and disgraced financier Jeffrey Epstein.
Howden Joinery shares rose as the building materials merchant said it expected annual profits to be at the top end of expectations due to the continuing demand for home DIY.
Shares in French drugmaker Sanofi were up after HSBC upgraded the stock to ‘buy’.
Pandora, the world’s largest jewellery maker, fell 6% despite raising its outlook for the year.
Ryanair reported its first quarterly profit since before COVID-19 and jewellery firm Pandora lifted sales and profit margin outlook for the year.
UK housebuilders were out of favour as they face the prospect of increased mortgage costs with Thursday’s Bank of England rate decision looming and markets expecting a rise not just this week, but seeing rates beyond 1% by the middle of next year.
"While the removal of all stamp duty holiday benefits has thrown caution to the wind for investors, the prospect of a significant jump in interest rates is going to do little to help bolster support for the housebuilding stocks," said Joshua Mahony at IG Index. Barratt, Berekely, Persimmon, Taylor Wimpy and Vistry were all lower as a result.