Stock indices of Western European countries mainly rise on Wednesday, market participants are waiting for the results of the September meeting of the Federal Reserve System (FRS).
The composite index of the largest companies in the region Stoxx Europe 600 increased by 0.38% by 11:42 a.m. to 404.94 points.
The British stock index FTSE 100 rose by 0.64%, the French CAC 40 – by 0.04%, while the Italian FTSE MIB and the Spanish IBEX 35 added 0.8% and 0.2% respectively. Meanwhile, the German DAX fell 0.14%.
The Fed meeting will end on Wednesday at 21:00 CST, after which the traditional press conference of Central Bank Chairman Jerome Powell will begin at 21:30. Markets are convinced that the regulator will raise the key interest rate by at least 75 basis points.
Uniper shares fell 22% on news that the German government, the management of the energy company and its parent company Fortum have reached an agreement on state support.
The terms of the agreement provide for the government to inject 8 billion euros into the company’s capital through an additional issue of shares in favor of the state at a price of 1.70 euros per share. In addition, the German government will acquire Fortum’s stake in Uniper, after which the state stake in Uniper will reach about 99%.
Fortum’s market value soared 14%, leading the stock in the Stoxx Europe 600 index.
The price of securities of another German energy company, E.ON, rises by 0.7% on the announcement of the extension of the contract with CEO Leonard Birnbaum for another five years, until June 30, 2028.
Shares in France’s Schneider Electric shed 0.3%, while British software developer Aveva rose 2.3%. Aveva shareholders approved the sale to Schneider for 9.482 billion pounds ($10.8 billion).
Capitalization of Lloyds Bank rises by 0.4% after Citi analysts were optimistic about the profit prospects of European banks against the background of rising interest rates in the world’s leading economies. Shares of Societe Generale and UBS, also included by Citi among the region’s most attractive financial companies for investment, are down more than 1.5%.
