Western European stock indices are mainly increasing during the trading on Wednesday.
Traders are assessing a fresh batch of statistics and waiting for a speech by Jerome Powell, head of the U.S. Federal Reserve (Fed).
Powell will speak at 8:30 p.m. Wednesday at the Hutchins Center on Fiscal and Monetary Policy, giving his views on the economy and labor market. The event also includes answers to questions from the audience. Traders will closely follow the Fed chief’s statements, hoping to get signals about the future trajectory of monetary policy.
In early November, the Fed raised the rate by 75 basis points (bps) for the fourth consecutive meeting, and now the rate is at its highest level since January 2008 – 3.75-4% per annum. The last U.S. central bank meeting this year is December 13-14, and the market is expecting a more modest 50 bps rate hike.
The Stoxx Europe 600 composite index of the region’s largest companies was up 0.36% to 438.85 points by 10:57 a.m.
Germany’s DAX stock index is up 0.45%, Britain’s FTSE 100 is up 0.35%, France’s CAC 40 is up 0.3% and Italy’s FTSE MIB is up 0.31%. Meanwhile, Spain’s IBEX 35 is down 0.05%.
France’s GDP volume rose 0.2% in the third quarter from the previous three months, final data from the national statistics institute Insee showed. The final data matched a preliminary estimate. Analysts on average had not expected a revision, according to a Trading Economics survey.
GDP growth slowed from a 0.5% rebound in the second quarter.
Consumer prices in France, harmonized with European Union standards, rose 7.1% year on year in November, preliminary data from the Insee National Statistics Office showed.
Prices also rose 7.1% in October, and analysts polled by Trading Economics expected inflation to remain at the same level.
Meanwhile, consumer spending in the country collapsed 2.8 percent in October compared with the previous month, according to data from the Insee National Statistics Office. Analysts polled by Bloomberg expected a more moderate decline of 1 percent. The consensus forecast of experts polled by Trading Economics envisioned a decline of 0.6%. The decrease in consumer spending was the maximum since April 2021.
The number of unemployed in Germany increased by 17 thousand in November, according to the Federal Employment Agency of Germany. The rise in the index was marked at the end of the sixth month in a row.
Experts interviewed by Bloomberg agency forecasted an average growth of 13.5 thousand. Respondents of Trading Economics expected an increase of 13 thousand.
Shares of software developer Samhaellsbyggnadsbolaget i Norden are among the leaders of growth among Stoxx 600 components, which rose in price by 6%.
Shares of Hennes & Mauritz AB (H&M) are up 0.4%. The Swedish clothing retailer said it will cut about 1,500 jobs as part of a previously announced cost-cutting plan. The company also expects to record restructuring costs of more than SEK800 million ($75.6 million) in the fourth quarter.
Mulberry Group PLC’s stock price is down 15.8%. The British luxury brand, which specializes in the production of exclusive bags and accessories made of leather, received pretax loss in the first half of the current fiscal year.
Shares of SAS AB rose by 0.45%. The Scandinavian airline increased its net loss in the fourth fiscal quarter amid the negative impact of rising fuel prices and exchange rate fluctuations.
