European shares edged higher on Wednesday, after logging gains in the previous session when Germany inched closer to plans for a large spending surge, while investors were focused on the US Federal Reserve’s interest rate decision later in the day.
The continent-wide Stoxx 600 was up 0.2 per cent, extending gains to a fourth session.
While investors had concluded that the Fed would leave rates unchanged, which it did, they were eagerly anticipated comments from policymakers, against the backdrop of a global trade war and concerns of a recession in the world’s biggest economy.
Dublin
The Iseq All-Share index ended the session down 0.1 per cent at 11,026.46.
Housebuilders were in vogue, with Cairn Homes adding 3.2 per cent to reach €2.12, while Glenveagh Properties surged 4.3 per cent to €1.62. Figures out on Wednesday showed that house prices in the Republic grew at an annualised rate of 8.1 per cent in January as supply pressures continued to underpin demand.
Banking stocks were mixed, with AIB down 0.5 per cent at €6.75, while Bank of Ireland edged 0.2 per cent higher to €11.96.
Ryanair dipped 0.3 per cent to €21.04.
London
The FTSE 100 in London closed virtually unchanged, as investors maintained caution in advance of the US interest-rate decision, while gains in energy stocks kept declines in check.
Energy stocks topped sectoral gains, lifted by higher oil prices on hopes of rising US fuel demands and a possible limited ceasefire between Ukraine and Russia.
The Bank of England is also expected to hold rates on Thursday, though close attention will be paid to discussions between dovish and hawkish policymakers for clues on future rate cuts.
Compass Group was the top FTSE 100 decliner, dropping 4.7 per cent after Exane BNP Paribas downgraded the catering company’s stock to underperform from outperform.
IT services provider Softcat rose 6.5 per cent after raising its 2025 operating profit growth forecast.
Drugmaker GSK’s shares dropped 1.7 per cent after the US health department said it was reviewing the future of its HIV prevention division.
Elsewhere, data showed pay increases granted by UK employers have fallen back in line with inflation for the first time since October 2023, according to human resources data firm Brightmine.
Europe
German equities had jumped on Tuesday after the country’s lower house approved plans for a large spending surge to revive economic growth and scale up military spending.
Mid-caps and small-caps in the country underperformed peers on Wednesday, falling 1.1 per cent and 0.7 per cent, respectively. Germany’s blue-chip index fell 0.4%.
Analysts, however, say execution is critical for the funding to materialise into long-term growth. Barclays raised its year-end target for the STOXX 600 index, citing German fiscal reform raising long-term growth prospects for the region.
In Europe, industrials and energy shares were the biggest boosts to the index. Retail stocks gained 1.6 per cent, the most among sectors, while telecommunication companies ended at the bottom.
Turkey also saw some political uncertainty after authorities detained president Tayyip Erdogan’s main political rival on charges including corruption and aiding a terrorist group.
Softcat jumped 6.5 per cent after the IT services provider raised its full-year operating profit growth forecast.
New York
Wall Street’s main indexes were generally ahead in early afternoon trading, in advance of the Fed’s widely anticipated monetary policy decision, at a time when worries linger about trade policies and their impact on the economy.
The EU will tighten steel import quotas to reduce inflows by a further 15 per cent from April, a senior EU official said, in a move aimed at preventing cheap steel flooding the European market after Washington imposed new tariffs.
Boeing shares jumped after the aircraft maker said it doesn’t see a near-term impact from tariffs.
Nvidia rose as CEO Jensen Huang said the company was well placed to navigate a shift in the artificial intelligence industry.
Venture Global advanced after a report said the Trump administration is set to grant the LNG producer conditional approval to export natural gas from a proposed Louisiana facility.
- Additional reporting, Reuters
