Europe open: Shares up after Fed tones down hawkish stance
European markets opened higher 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 0.6% in early deals 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 10%, while French life insurer Scor fell 7% after swinging to a first-half loss.
Reporting by Frank Prenesti at Sharecast.com