European stock markets are on an upward trajectory due to the Fed

European stocks edged higher on Thursday as global markets were relieved by a less hawkish tone from the US central bank.

The pan-European Stoxx 600 is up 0.5%, the FTSE is up 0.54%, the DAX is up 0.53%, the CAC 40 is up 0.63%, the FTSE Mib in Milan is up 1.10% and the IBEX 35 in Madrid it registers gains of 0.31%.

The Fed yesterday raised interest rates by 0.75% as expected as it tries to tackle inflation without triggering a recession.

Chairman Jerome Powell maintained an aggressive tone on containing inflation at a news conference afterward, but the central bank withdrew its guidance on the size of the next rate hike and acknowledged that “at some point” it would be appropriate to slow the pace of interest rates. increases.

The rise in yesterday’s Wall Street session continues in the European stock markets, where, however, interest is also focused on the results of companies.

In particular, Barclays announced a 48% drop in second-quarter profits, which were, however, in line with expectations.

Spanish bank Santander said its second-quarter net profit rose 14% year-on-year, mainly thanks to higher revenue in Europe and the Americas, partially offset by higher forecasts in Brazil and the US .

Volkswagen also reported a drop in second-quarter profit, but maintained its full-year targets.

The German automaker said profit after tax came in at 3.91 billion euros, up from 5.04 billion euros a year ago.

Meanwhile, the world’s largest food company Nestle’s net profit fell to 5.2 billion Swiss francs ($5.42 billion) and its underlying operating profit margin fell to 16.9% in the first half of 2022, from 17.4% a year ago.

On the economic data release front, preliminary data on German inflation and a business sentiment indicator in the Eurozone are expected.