European stocks continue to hold onto gains, with the pan-European Stoxx 600 up 0.7% by around noon in London. Basic resources have added 2.9% to lead gains, while most sectors and major bourses have advanced. However, telecoms slipped 0.4% lower.
The FTSE 100 has inched into positive territory for the year after a UK inflation print. The index climbed 0.8% Wednesday morning, nudging into positive territory after fresh data showed UK inflation fell to a two-year low in October.
The headline consumer price index fell to an annual 4.6%, lower than economist expectations and a significant drop from the previous month’s 6.7%. Core CPI also fell to an annual 5.7% in October from 6.1% in September. “Whether falls in inflation will stall and whether the Bank of England is as keen as Rishi Sunak to declare mission accomplished in the fight against rising prices remains to be seen,” said Russ Mould, investment director at AJ Bell.
Siemens Energy shares climbed more than 7% after the company secured 7.5 billion euros ($8.15 billion) in project-related state guarantees from the German government. However, shares of French train manufacturer Alstom plummeted more than 10% after the company announced that it would cut 1,500 jobs and sell off assets.
European stocks made a positive start on Wednesday, with the pan-European Stoxx 600 up 0.4% in early trade.
Siemens Energy has secured 7.5 billion euros ($8.15 billion) in project-related state guarantees from the German government, hours before announcing a nearly 5 billion euro loss for its fiscal year. The backstop was granted as part of a wider package of 15 billion euros in guarantee lines agreed with banks and other stakeholders.
UK inflation fell sharply in October to 4.6% from 6.7% the previous month, hitting a two-year low. The headline consumer price index was flat on a monthly basis, coming in below economist expectations.
As investors consider which stocks to sell to harvest tax losses before the end of the year, Scotiabank identifies several Canadian stocks on Canada’s TSX Composite index that are down significantly this year but are still rated as “Sector Outperform” by its analysts.
European markets are expected to open in mixed territory Wednesday, with the U.K.’s FTSE 100 index expected to open 4 points lower at 7,419.
Overall, Wednesday has shown a range of market movements across Europe, with investors closely watching stocks and inflation data.