European Shares Inch Higher As China Cuts Interest Rate

European Shares Inch Higher As China Cuts Interest Rate

August 22, 2022

European stocks inched higher on Monday, as investors mulled disappointing Chinese data and awaited the minutes of the Federal Reserve’s July meeting due on Wednesday for clues on the size of next rate hike.

Sentiment was underpinned after China’s central bank cut both one-year and seven-day lending rates by 10 basis points in a surprise move to revive demand.

Meanwhile, German wholesale price inflation slowed for the third straight month in July but remained at an elevated level due to higher raw material costs, Destatis reported.

Wholesale prices registered a double-digit annual increase of 19.5 percent in July, but slower than the 21.2 percent increase seen in June.

The pan European Stoxx 600 rose 0.3 percent to 442.06 after closing 0.2 percent higher on Friday.

The German DAX and the U.K.’s FTSE 100 were marginally higher, while France’s CAC 40 index edged up 0.2 percent.

Miners Anglo American and Antofagasta fell over 1 percent each after China’s retail sales and industrial output data for July came in below estimates.

Oil & gas company BP Plc was slightly lower and Shell dropped 1 percent as oil extended Friday’s losses on concerns about demand at the world’s largest crude importer.

AstraZeneca rallied 2.6 percent after the drug maker reported positive trial results of its cancer drug, Enhertu, developed with Japan’s Daiichi Sankyo.

Life insurer Phoenix Group fell about 1 percent after its interim loss widened.

Henkel was little changed after the German consumer goods maker reported weak profit in its first half amid increasing costs.

Meal kit delivery firm HelloFresh jumped 8.1 percent after reporting record quarterly revenues.

Energy firm Uniper soared 9.1 percent ahead of the government’s announcement on the size of its gas price levy.

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