Europe close: Stocks end higher but off best levels

17th Apr 2024 16:44

(Sharecast News) - European shares rebounded on Wednesday after a major sell-off a day earlier.

For Kathleen Brooks at XTB, the stabilisation in indices was a function of Fed chair Powell having ruled out rate hikes the day before, not to mention that the sell-off thus far in the week had been brutal.

IG's Chris Beauchamp however cautioned that selling across global markets might easily reappear should Tel Aviv opt for a "major retaliatory action".

The pan-European Stoxx 600 index edged up 0.17% to 499.07, alongside similar cautious gains for the German Dax of 0.02% to 17,770.26.

Spain's Ibex 35 on the other hand bounded back 1.02% to 10,663.90.

In parallel, the euro had edged up, but Brent crude was down 1.4%, while gold and 10-year Bund yields had dipped.

According to Foreign Office Secretary David Cameron, it was "clear" that Israel would retaliate but he hoped that it would be in a manner that escalated the situation as little as possible.

Fresh sanctions on Iran expected to be announced by the G-7 over the following days were in part expected to be designed to mollify Tel Aviv, Reuters reported.

Eurostat confirmed that headline CPI in the single currency bloc slipped from 2.6% year-on-year for February to 2.4% in April.

The bloc's foreign trade surplus meanwhile narrrowed from €27.1bn in January to €17.9bn in February as imports jumped by 4.2%.

In equity news, IDS spiked 29% as Czech billionaire Daniel Kretinsky's EP group confirmed it had made a non-binding possible cash offer for the mail and parcel carrier on April 9 which had been rejected. EP owns around 27% of the company at the moment.

Shares in luxury giant LVMH were up 3% after weak quarterly sales growth numbers release late Tuesday weren't as bad as feared. Sector peers Burberry and Christian Dior were also higher.

Continental shares fell 5% after the German automotive supplier published first-quarter revenue and profit margin below expectations.

ASML fell 7% as the largest supplier of equipment to computer chip makers reported weaker-than-expected new bookings in its first-quarter earnings on Wednesday.

Adidas shares rose 9% as the sporting goods maker raised its 2024 profit outlook after a better-than-expected first quarter.