Title: European Markets Edge Higher Amid Earnings Parade, Fed Decision Fallout
Jul 28, 2022 03:40AM ET
European markets rallied on Thursday as investors took into account both the latest company results and the second interest rate hike of 75 basis points by the US Federal Reserve in two months.
At 3:36 a.m. EDT, the pan-European STOXX 600 index was up 0.50 percent, and Germany's DAX was also trading up 0.10 percent.
Losers were France's CAC 40, down slightly by 0.02%, and the UK's FTSE 100, down 0.40%.
The Fed's decision to raise its target interest rate on Wednesday by three-quarters of a percent was widely expected.
But Fed Chairman Jerome Powell also dropped guidance on the size of the next rate hike, creating the possibility that the central bank will soon move to a slower pace of rate increases.
In Europe, quarterly corporate earnings continue to be released.
Automaker Stellantis NV reported record first-half earnings as strong results in all five of its regions helped offset rising raw material costs and semiconductor shortages, pushing the stock up more than 3%.
Orange SA reported a 0.5% increase in underlying operating profit for the second quarter from the same period last year as strong growth in its Africa and Middle East division offset sales declines in its home country and Spain.
Shares in France's largest telecommunications company fell more than 3%.
Shares of Anheuser-Busch InBev SA/NV fell more than 2 percent, although the world's biggest beer maker reported higher-than-expected second-quarter earnings thanks to higher consumer volumes and higher prices.
Nestlé S.A. raised its full-year sales growth forecast to 7-8% and only slightly lowered its margin forecast after cost inflation hit the Swiss company less than expected and price increases boosted organic sales growth in the first half of 2022. Shares in the world's largest food group fell more than 2%.