European shares edge higher with ECB policy minutes on tap (updated)
23/11/2023 10:14
(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
*
Euro zone business activity falls in Nov
*
ECB October meeting minutes awaited
*
STOXX 600 up 0.1%
(Updated at 0958 GMT)
By Shristi Achar A
Nov 23 (Reuters) - European shares inched higher on
Thursday, supported by gains in energy stocks, while investors
awaited minutes of the European Central Bank's (ECB) latest
meeting for clues on the region's monetary policy path.
The pan-European STOXX 600 .STOXX was up 0.1% by 0958 GMT,
extending gains after notching a two-month high in the previous
session.
Oil and gas .SXEP cushioned the benchmark index, up 0.9%
following the sector's two straight sessions of losses.
Investors will keenly watch the ECB's release of the October
policy meeting minutes for any cues on the central bank's
interest rate trajectory.
"Inflation is going down, but not as fast. So the general
setting is that ECB is kind of at the mercy of economic slowdown
and global policy rates," said Marija Veitmane, a senior
multi-asset strategist at State Street Global Markets.
ECB officials have repeatedly tried to snuff growing bets of
rate cuts amid data signalling a sustained fall in inflation and
a likely recession.
ECB Governing Council member Joachim Nagel said in an
interview on Der Spiegel that the goal in terms of inflation has
not yet been reached.
Market participants digested the euro zone Composite
Purchasing Managers' Index, which showed business activity in
the region eased in November, but suggested the bloc's economy
will contract again this quarter as consumers continue to rein
in spending.
Amsterdam's AEX .AEX was muted, following a shock election
win by the far-right politician Geert Wilders in the
Netherlands.
Aiding gains, Sweden's main stock index .OMXSPI rose 0.8%
after its central bank, Riksbank, kept its policy rate on hold
at 4%.
Among stocks, Endesa ELE.MC fell 2.6% after the Spanish
utility cut its 2023 outlook for profit.
Virgin Money UK VMUK.L slid 2.8% on reporting its annual
profit below market estimates.
France's LDC LOUP.PA added 3.5% after the poultry producer
posted a higher first half-year net profit and raised its annual
forecast.
Analysts pointed to weaker trading volumes as U.S. markets
were closed on account of Thanksgiving holiday.
(Reporting by Shristi Achar A in Bengaluru; Editing by Mrigank
Dhaniwala)
((Shristi.AcharA@thomsonreuters.com
https://twitter.com/ShristiAchar;))