Alexander Bueso Sharecast News
31 Jul, 2024 18:41

Europe close: Italian and Spanish issues drag

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Eurotower, Frankfurt am Main, GermanyCourtesy of the European Central Bank

European shares ended Wednesday's session on a mixed note as investors digested an unexpected rise in eurozone inflation and looked ahead to rate decisions from the US and UK amid another dump of corporate earnings.

The pan-regional Stoxx 600 index was up 0.80% at 518.18, alongside a 0.76% gain for the French Cac-40 to 7,531.49.

Spain's Ibex 35 on the other hand slipped 1.23% to 11,065.0, while Italy's FTSE Mib retreated 0.43% to 33,763.86.

Investors were also taking stock of a rate rise from the Bank of Japan - only its second increase since 2007.

The US Federal Reserve was expected to keep rates on hold when it finished a two-day policy meeting, while the Bank of England was to meet a day later for its latest decision.

Eurozone prices increased marginally faster than anticipated in July, a development that might cause the European Central Bank (ECB) to reconsider its plans for further rate reductions.

Inflation within the single currency bloc increased to an annual rate of 2.6% in the year leading up to July, a rise from 2.5% in June, according to a flash estimate from Eurostat, the EU's statistical office.

It was also higher than the 2.4% expected by economists, and above the ECB’s 2% target.

Core inflation remained steady at 2.9% for a third consecutive month. Services inflation eased marginally to 4% and food inflation also eased slightly. Energy prices were up 1.3% year on year, and helped to drive the rise.

In equity news, shares in coffee and tea company JDE Peet's snapped higher as the company raised its full-year sales growth forecast, after reporting half-year results above analysts' expectations.

HSBC interim results beat analyst expectations, while the Asia-focused bank also unveiled a $3bn buyback and said farewell to CEO Noel Quinn.

Just Eat shares rose as the food delivery company said it was buying back €150m in shares after a rise in interim core profits.

Shares in ASML jumped after a report that new US exports rules for semiconductor equipment with China would not affect certain allies, including the Netherlands.

French shopping centre operator Klepierre advanced after the company posted positive first-half results and a 2% increase in EPS guidance.

Aena fell as the Spanish airport operator posted in-line second-quarter results after a series of better-than-expected earnings announcements.

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