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European Shares Gain On China Stimulus Hopes

market trends2 100421 16aug22 lt

European stocks edged higher on Tuesday as disappointing data from the United States led to speculation of the Federal Reserve slowing down on rate hikes.

New York state manufacturing activity plummeted in August and a gauge of homebuilder sentiment declined for an eighth-straight month, helping ease worries about aggressive policy tightening by the Fed.

Investors shrugged off the latest ZEW survey results showing that economic sentiment continued to deteriorate in the euro area and in Germany.

Elsewhere, the U.K. labor market showed more signs of cooling, with real levels of wages falling at the fastest pace in two decades, official data showed.

Underlying sentiment remained supported amid expectations that Chinese policymakers would roll out more stimulus measures to boost sagging economic growth.

The pan European Stoxx 600 edged up 0.3 percent to 443.61 after rising 0.3 percent on Monday.

The German DAX climbed 0.6 percent, France's CAC 40 index added 0.3 percent and the U.K.'s FTSE 100 was up half a percent.

Dutch health technology firm Philips rallied 2.6 percent after announcing CEO succession.

Sonova plummeted 14.6 percent. The Swiss hearing aid maker lowered its full-year earnings forecast, citing a subdued market and ongoing input cost challenges.

Pandora slumped 7.3 percent after the Danish jewelry maker posted a fall in second-quarter operating profit.

BHP shares surged 4.4 percent after the mining giant posted record annual earnings and said it would return a record amount of cash to investors.

Ted Baker jumped 17 percent after the fashion brand agreed to a 211 million pound ($254.3 million) final cash offer from Juicy Couture, Reebok and David Beckham brand owner Authentic Brands Group LLC.

Darktrace rallied 19 percent. The cybersecurity company said it is in early stages of discussions with private equity firm Thoma Bravo about a possible takeover.

Mondi fell about 1 percent. The packaging and paper company has agreed to acquire the Duino mill near Trieste in Italy from the Burgo Group for a total consideration of 40 million euros.

Delivery Hero shares soared 11.2 percent. The German food-delivery firm confirmed its full-year targets, which it updated in July.

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