The graphic of the German stock index DAX is shown on the Frankfurt Stock Exchange on November 21, 2023. REUTERS/Staff/File Photo Acquire License Rights
- Kingfisher falls after cutting full-year profit forecast
- Thyssenkrupp jumps on the FCF beat
- Adevinta Surges After $13.1 Billion Takeover Offer
- The British company Hunt is cutting taxes to stimulate the economy
- STOXX 600 rises 0.3%, FTSE 100 slips 0.2%
Nov 22 (Reuters) – European stocks hit a two-month high on Wednesday, led by interest rate-sensitive real estate stocks, while British software company Sage jumped to a record high after reporting strong annual operating profit and announcing a share buyback plan.
The pan-European STOXX 600 (.STOXX) closed 0.3% higher, with real estate stocks (.SX86P) leading the gains, rising 1.5%.
Meanwhile, a measure of euro zone stock market volatility (.V2TX) hit its lowest level since July.
Euro zone bonds were little changed after central bank officials did little to dampen investors’ expectations of the next interest rate cut.
Minutes from the U.S. Federal Reserve’s latest policy meeting showed officials agreed to proceed “cautiously” and only raise interest rates if inflation spikes again, while European Central Bank President Christine Lagarde said Victory is not yet won, but betting based on short-term data flows is already premature.
“Markets are on the verge of a fair valuation and there is no major positive catalyst, but yet investors are still waiting and believe things will improve soon, and they have been saying that for a year,” said Michael Field, Europe Market Strategist at Morningstar.
In Britain, Finance Minister Jeremy Hunt announced tax cuts for workers and gave companies incentives to invest ahead of an expected election in 2024 to stimulate the economy.
The commodities-heavy FTSE 100 (.FTSE) slipped 0.2%, underperforming other regional markets, while heavyweight energy stocks saw weak crude oil prices as an OPEC+ meeting was delayed.
Sage (SGE.L) rose 13.3% to the top of the STOXX 600 after the company reported an 18% rise in full-year adjusted operating profit and said margins would continue to rise this year. The company also announced a share buyback program worth £350 million.
Thyssenkrupp (TKAG.DE) rose 6.6% after the German submarine-to-steel group reported full-year results with “strong” free cash flow.
German fashion house Hugo Boss (BOSSn.DE) rose 3.0% after Deutsche Bank and BofA Global Research upgraded their ratings.
Adevinta (ADEA.OL) rose 4.8% after a consortium led by Permira and Blackstone (BX.N) offered to buy the online classifieds group for about 141 billion Norwegian crowns ($13.1 billion). .
Monte dei Paschi di Siena (BMPS.MI) recovered 2.0% after falling 7.9% on Tuesday as Italy sold a 25% stake in the rescued bank. Meanwhile, rating agency Moody’s raised its ratings by one notch and confirmed its positive outlook.
Entain (ENT.L) rose 5.9%, with traders linking the rise to a Financial Times report that activist investors were putting pressure on the owner of betting group Ladbrokes.
Home improvement retailer Kingfisher (KGF.L) fell 7.0% after cutting its full-year profit outlook for the second time in just three months.
($1 = 10.7960 Norwegian Kroner)
Reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Edited by Sonia Cheema and Alexander Smith
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