Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guides
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Europe close: Stoxx 600 edges higher, but London stocks outperform
(Sharecast News) - European stock markets finished in a mixed fashion on Wednesday, with only mild gains for the Stoxx 600, though the FTSE 100 outperformed the rest of the continent after data showed a bigger-than-expected drop in inflation. London's benchmark index finished up 1.1% at 7,724, its highest level since mid-September, after UK inflation slowed in November to 3.9%, down from 4.6% in October, adding pressure on the BoE for a cut in rates next year.
Policymakers held the benchmark base rate at 5.25% last week and then set about dampening expectations of any easing, saying monetary policy was likely to stay tight for an extended period of time.
"The drop in UK CPI delivered a timely Christmas present for the FTSE 100, taking it back to 7700 and making it the strong performer of the day," said analyst Chris Beauchamp from IG.
"While GBP bulls won't like to see the drop in price inflation, for investors in UK plc there is hope that next year will bring more good news, in the form of rate cuts that can give the FTSE 100 a further boost."
However, 0.1% falls in Frankfurt and Madrid, a flat performance in Milan and just a 0.1% gain in Paris meant that the pan-European Stoxx 600 finished just 0.2% higher at 477.94 - though that was its highest finish since mid-January 2022.
A barrage of other European economic data was keeping traders busy on Wednesday: German producer prices fell more than expected in November, down 7.9% year on year; eurozone construction output dropped by 1% in October; while the GfK German consumer sentiment index rose to -25.1 from -27.6 but still remained weak.
In other news, Brent crude rose a further 0.9% to $79.92 a barrel on Wednesday, having jumped around $7 in the past week, on the back of supply-chain fears in the Red Sea as a result of disruption caused by Yemen's Houthi rebels.
Raiffesisen soars
Shares in Raiffeisen Bank surged 13% after a deal to buy a 28% stake in Austria's Strabag, one of the largest construction companies in Europe, from Russian oligarch Oleg Deripaska in a move that would work around EU sanctions.
Argenx shares plunged by 26% after the pharmaceutical company said its only medicine was seen to not help patients with a rare skin disorder.
Telefonica rose 3% after the Spanish government said it plans to buy a stake in the carrier worth as much as $2.2bn. Other telecom stocks such as United Internet AG and Telecom Italia also finished with decent gains.
In London, Intertek was the standout performer, up 4%, after Exane BNP Paribas upgraded the shares to 'outperform' from 'underperform' as it said it sees 20% upside from a re-rating as the market prices in stronger mid-term earnings per share growth.
Just eight stocks on the FTSE 100 finished in the red, as inflation data boosted sentiment, with retailers and grocers such as Ocado, M&S, Kingfisher and B&M among the biggest risers.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Diversity, Equity & Inclusion Reports | Doing Business with Fidelity | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.