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European Shares Rise Ahead Of Fed Meeting

stockmarkets aug20 28jul20 lt

European stocks were modestly higher on Tuesday as investors kept a close watch on U.S. stimulus talks and awaited clues from a Federal Reserve meeting starting later in the day.

The pan European Stoxx 600 rose half a percent to 367.91 after declining 0.3 percent on Monday.

The German DAX edged up 0.4 percent and the U.K.'s FTSE 100 gained 0.3 percent, while France's CAC 40 index was marginally higher in choppy trade.

Housebuilders rallied in London on the back of reports that U.K. ministers are drawing up plans to extend the Help to Buy property support scheme beyond its December deadline.

Barratt Developments surged 4.8 percent, Berkeley Group Holdings gained 4.3 percent, Persimmon advanced 3 percent and Taylor Wimpey added 2.9 percent.

Education publisher Pearson jumped 5.3 percent after falling sharply in the previous session on downbeat broker notes.

Greencore soared 7 percent after the Irish convenience food group announced the sale of its molasses business.

TalkTalk Telecom Group rose 1.2 percent on a Sky News report that it rejected a takeover bid from major investor Toscafund Asset Management in 2019.

Bakery chain Greggs tumbled 3.6 percent after it swung to a £62m first half loss
Rexel, a distributor of electrical supplies, lost 3 percent after it slipped to a net loss during the first half of the year.

Peugeot shares surged 4 percent after PSA Group said a strong rebound is underway.

Luxury goods conglomerate LVMH slumped 4.2 percent after its operating profit dived 68 percent in the first half of the year.

Dutch design, engineering and consultancy company Arcadis NV jumped 15 percent after its first-half net income climbed 68 percent to 62 million euros from last year's 37 million euros.

Fuchs Petrolub AG shares fell 2.5 percent. The company engaged in the lubricant business said it expects a drop in earnings in the range of 25 percent for the financial year 2020.

In economic releases, German manufacturers' export expectations strengthened in July, survey data from the ifo institute showed today.

The ifo export expectations index for manufacturing rose to plus 6.9 points in July from minus 2.2 points in June. Cautious optimism is spreading among German exporters, Clemens Fuest, ifo President said.

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