European shares rise after Powell's dovish comments; focus on elections (updated)
03/07/2024 10:06
(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
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STOXX up 0.6%
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Bpost falls to record low on lower-than-expected guidance
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UK's JD Sports top loser on FTSE 100 on Barclays downgrade
(Updated at 0845 GMT)
By Sruthi Shankar and Jesus Calero
July 3 (Reuters) - European shares rose on Wednesday as
investors welcomed dovish comments from Federal Reserve Chair
Jerome Powell and looked ahead to the second round of the French
vote and national elections in the UK.
The pan-European STOXX 600 index .STOXX was up 0.6% as of
0845 GMT, rising for a second session out of the last seven.
Wall Street's benchmark S&P 500 .SPX closed above the
5,500 mark on Tuesday after Powell told a panel that recent data
represented "significant progress" on inflation, while adding
that the Fed needed to see more data before changing policy.
Technology stocks .SX8P added 1.6%, underpinned by Dutch
semiconductor equipment makers ASMI ASMI.AS and BE
Semiconductor Industries BESI.AS , jumping 2.7% and 6.3%,
respectively.
"At some point, there will be some correction (in the
markets) to the downside. When this starts for semiconductors,
other sectors should be there to give support and limit the S&P
500's losses," said Ipek Ozkardeskaya, market analyst at
Swissquote.
Miners .SXPP were the top sectoral gainers, rising 1.7%,
after copper prices climbed on a softer dollar amid renewed
hopes of U.S. rate cuts and as supply jitters offset a dismal
outlook for physical demand from top consumer China.
French stocks .FCHI climbed 1% as opponents of France's
National Rally (RN) stepped up their bid to block the far-right
party from power, with more candidates agreeing to pull out of
this weekend's run-off election to avoid splitting the anti-RN
vote.
"Investors in France are panicking over the possibility of
seeing an outright majority of the far-right National Rally.
This stress is expected to result in voting to block such a
majority, which would be a positive for the markets,"
Ozkardeskaya said.
Eurofins EUFI.PA shares rose 3.1% after the French lab
testing firm provided a detailed response to short seller Muddy
Waters' allegations.
The UK's FTSE 100 .FTSE also added 0.5% ahead of the July
4 vote, which could see a possible end to 14 years of
Conservative government. .L
Among stocks, JD Sports JD.L dropped 3% to the bottom of
the London's blue chip index after Barclays cut the sports
fashion retailer to "underweight" from "equal-weight", citing
concerns about the company's heavy reliance on Nike.
Volkswagen VOWG_p.DE edged up 1% after U.S. electric
vehicle maker Rivian RIVN.O denied a media report about its
extended partnership with the German automaker.
Danish shipping giant Maersk MAERSKb.CO rose 3.5% after it
agreed to sell its offshore marine service provider Maersk
Supply Service to Norway's DOF Group DOFG.OL for $1.11
billion.
Bpost BPOST.BR tumbled 6.7% after the Belgian postal
operator issued a downbeat full-year earnings forecast, citing
unfavourable market conditions in North America.
(Reporting by Sruthi Shankar in Bengaluru and Jesus Calero in
Gdansk; Editing by Sohini Goswami and Sonia Cheema)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6182 2787;))