European stocks rose on Wednesday, boosted by bank papers and basic funds, with investors awaiting updates from central banks on monetary policy tightening amid growing fears of an economic slowdown.
The pan-European STOXX 600 index closed up 0.63% at 434.31 points. Banks, which benefit when interest rates rise, gained 1.1% to hit a new one-month high and were among the biggest boosts to the benchmark index.
Markets are focusing on the minutes of the Federal Reserve’s latest monetary policy meeting, to be released at 3 pm, as investors try to gauge policymakers’ thinking on the trajectory for further rate hikes.
European Central Bank President Christine Lagarde has gained key allies for her plan to raise rates above negative territory by the end of the third quarter, even after one of her own board members on Wednesday expressed some skepticism about the monetary policy path ahead.
“Investors are continually reassessing the odds of continued tightening by the Fed and other central banks,” said Andrea Cicione, head of strategy at TS Lombard.
Energy and materials papers were among the biggest gains in Europe. Oil prices rose, boosted by tight supply and the prospect of increased demand from the next start of the summer season in the United States.
- In LONDON, the Financial Times index advanced 0.51% to 7,522.75 points.
- In FRANKFURT, the DAX index rose 0.63% to 14,007.93 points.
- In PARIS, the CAC-40 index gained 0.73% to 6,298.64 points.
- In MILAN, the Ftse/Mib index appreciated by 1.57%, at 24,250.45 points.
- In MADRID, the Ibex-35 index registered an increase of 1.49%, to 8,760.20 points.
- In LISBON, the PSI20 index rose by 0.88%, to 6,184.84 points.
Source: CNN Brasil