Stock indices of Western Europe rose on the basis of yesterday's trading, investors' attention is directed to the upcoming meetings of the US Federal Reserve System (FRS), the Bank of Japan and the Bank of England.
The Federal Reserve will hold its first meeting on September 15-16 since the new long-term strategy was approved in late August. Experts believe that the American Central Bank will maintain a “dovish” attitude at the upcoming meeting, as the US economy, recovering from the crisis caused by the coronavirus pandemic, still needs support, writes Bloomberg.
Economists expect that the new Fed's strategy, which provides for a softer approach to monetary policy, will be reflected in concrete measures to support the economy, given that the prospects for the approval of the next batch of fiscal stimulus by the US authorities are increasingly dubious.
Investor optimism on Tuesday was supported by data from the State Statistical Office of the PRC, according to which retail sales in the PRC last month increased by 0.5% compared to the same period last year. The rise in retail sales was recorded for the first time in 2020.
In addition, the index of economic expectations of investors and analysts in Germany for the next six months, calculated by the research institute ZEW, in September rose by 5.9 points – to 77.4 points, which is the highest value since May 2000.
Meanwhile, the growth of consumer prices in France in August slowed to 0.2% in annual terms from 0.8% in July.
The number of new applications for unemployment benefits in the UK in August grew less significantly than analysts had predicted – by 73.7 thousand after rising by 94.4 thousand in July. Experts predicted an average growth of 100 thousand. Unemployment in the UK in May-July 2020 was 4.1%, as experts expected. This is the highest figure since August-October 2018. In April-June 2020, unemployment was 3.9%.
The composite index of the largest enterprises in the region Stoxx Europe 600 climbed 0.66% to 370.96 points.
The British FTSE 100 indicator rose 1.32%, the German DAX – 0.18%, the French CAC 40 – 0.32%. Italy's FTSE MIB and Spain's IBEX 35 added 0.82% and 1.22%, respectively.
Stock quotes of the Swedish Hennes & Mauritz AB (H&M) jumped 10.8%. The owner of Europe's second largest clothing chain said its recovery from the coronavirus pandemic is doing better than expected, thanks to strong demand for apparel collections, increased sales of full-price merchandise, and cost-control measures. H&M's pre-tax profit for the third fiscal quarter ended August 31, according to preliminary data, was about SEK 2 billion ($ 230 million), beating the consensus forecast of analysts surveyed by FactSet at SEK 396 million.
Rival Industria de Diseno Textil SA (Inditex (MC: ITX)) gained 5.2%.
Ocado Group Plc, a British online food delivery service, rose 10.1%. The company recorded 52% revenue growth for its food joint venture, Ocado Retail, in the third fiscal quarter ended August 31. Ocado owns half of the joint venture, the other half is owned by the British department store chain Marks & Spencer Group Plc (M&S). M&S shares are up 5.2%.
The leaders of the fall were the shares of the German financial company Grenke AG, which fell 18.8% after Viceroy Research published a study accusing Grenke of fraud, writes CNBC.