Europe midday: Shares up ahead of rate calls; Carrefour slumps

18th Jun 2024 12:05

(Sharecast News) - European shares were higher on Tuesday as investors looked ahead to several central bank rate decisions, including from the Bank of England, while Carrefour shares slumped on a report it was facing a large government fine over franchise contracts.

The pan-regional Stoxx was up 0.48% to 513.96. The CAC 40 in France rose 0.39 to 7,601, while Germany's DAX index gained 0.24% to 18,116 and Britain's FTSE 100 0.32% to 8,138.

Central banks in Norway and the UK are expected to hold rates steady at policy meetings this week, while the Swiss National Bank is forecast to cut by 25 basis points.

In economic news, the cost of living in the single currency bloc rose slightly last month as the cost of services picked up, official data showed, with the eurozone's harmonised consumer price index rising 0.2% from April to 2.6%.

Tuesday's readings were in line with the preliminary estimates that had been published at the end of the previous month.

Earlier on Tuesday the Reserve Bank of Australia kept held rates at 4.35% but warned of upside risks from persistent inflation.

In equity news, hotel and restaurant owner Whitbread gained as it remained confident on its full-year outlook despite flat first-quarter sales growth.

Equipment rental group Ashtead fell as profits came in shy of expectations, as the company pointed to a further moderation of growth in the coming year.

Shares in French supermarket giant Carrefour slumped after reports in domestic media said the economic and finance ministry had recommended a substantial fine against the company for its franchise network management.

The report from the daily newspaper La Lettre, included a 160-page subpoena suggesting a fine of €200m, claiming around 5,200 franchisee stores contained "a significant imbalance" which profited the group.

Reporting by Frank Prenesti for Sharecast.com