Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Europe open: Shares edge ahead after US CPI as investors await Fed

(Sharecast News) - European stocks edged ahead at the open on Wednesday as investors digested US inflation and UK GDP data while awaiting a rate decision from the US Federal Reserve later in the day. The pan-European Stoxx 600 index was up 0.09% at 473.35 in early deals with all major bourses higher.

The Fed is expected to hold its benchmark overnight borrowing rate in a range of 5.25 - 5.5%, but investors will be looking at Fed Chair Jerome Powell's commentary for any indications on when rates might start falling.

In Britain, the economy shrank by 0.3% following 0.2% growth in September and versus expectations for a flat performance. Over the last quarter, GDP was unchanged.

"The UK is still mired deep in stagnation territory and a fast rebound looks unlikely, particularly given that interest rates are set to be kept on hold tomorrow, prolonging the pain for borrowers," said Hargreaves Lansdown analyst Susannah Streeter.

"However, it does increase the likelihood that the Bank of England might cut rates earlier than forecast, although it's still not likely until the second half of next year, given that wage increases, although slowing, are still strong."

Rate decisions are due on Thursday from the Bank of England and the European Central Bank.

In equity news, Entain shares were higher after chief executive officer Jette Nygaard-Andersen has resigned from her position with immediate effect. The company said it had appointed Stella David, a non-executive director, as interim CEO until a permanent replacement is selected.

B&M European Value Retail fell after SSA investments sold 27.8m shares in the discount retailer in a placing raising aggregate gross sale proceeds of £162.1m.

BAE Systems was higher after the defence manufacturer won a contract worth up to $8.8bn with the US Army to continue as the operating contractor of the Holston Army Ammunition Plant (HSAAP) with a base period of 10 years.

Reporting by Frank Prenesti for

Share this article

Related Sharecast Articles

London close: Footsie hits another record, but BoE comments limit gains
(Sharecast News) - A weak performance from the heavyweight mining sector wasn't enough to stop the FTSE 100 from reaching a new record high on Tuesday, as London's blue-chip index rose for the fifth straight day.
Broker tips: HSBC, Reckitt Benckisser, Watches of Switzerland
(Sharecast News) - Citi said on Tuesday that it remains 'overweight' UK banks, with HSBC one of its top picks.
Director dealings: Porvair CFO raises stake
(Sharecast News) - Porvair revealed on Tuesday that chief financial officer James Mill had acquired 4,250 ordinary shares in the London-listed filtration and environmental technology group.
Europe close: Stocks rise as investors digest PMI data
(Sharecast News) - European markets closed above the waterline on Tuesday, propelled by positive survey data from the eurozone that bolstered investor sentiment.

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.