Federal Reserve Outlook, Earnings Lift European Bourses Midday

European bourses tracked moderately higher midday Thursday, as traders weighed minutes of the most recent US Federal Reserve policy meeting, and gauged continental earnings reports.

Primary Image

© MT Newswires
Primary Image

Shares in UK-based Rolls-Royce rose 25% after the aerospace manufacturer released earnings topping Street views and said it plans to reinstate dividends.


Load Error

Tech, bank, and property issues led gainers, while food stocks lagged.

Trading floor denizens also eyed Wall Street futures signaling green, but choppy closes overnight on Asian exchanges.

The euro area inflation rate in January was 8.6% year on year, and 10% in the broader European Union, reported Eurostat.

The pan-continental Stoxx Europe 600 Index was up 0.1% mid-session.

The Stoxx Europe 600 Technology Index was up 1.1%, and the Stoxx 600 Banks Index rose 0.5%.

The Stoxx Europe 600 Oil and Gas Index was up 0.2%, but the Stoxx 600 Europe Food and Beverage Index declined 0.4%.

The REITE, a European REIT index, rose 0.5%, and the Stoxx Europe 600 Insurance Index rose 0.4%.

On the national market indexes, Germany’s DAX was up 0.4%, and the FTSE 100 in London was down 0.4%. The CAC 40 in Paris was up 0.2%, and Spain’s IBEX 35 rose 0.3%.

Yields on benchmark 10-year German bonds were higher, near 2.54%.

Front-month North Sea Brent crude oil futures were up 0.8% to $81.25 per barrel.

The Euro Stoxx 50 volatility index was down 5.2% to 20.07, indicating average volatility for European stock markets in the next 30 days. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges. The volatility index was notching over the 30-marker in late September.

Continue Reading