Europe open: German and French stocks rise on euro dip, auto tariff reports
European stocks were mostly higher on Wednesday as the dollar continued to dominate the single currency, with automotive and tech shares leading the gains.
The Stoxx 600 benchmark rose 0.4% to 386.5, with Germany's DAX up 0.7% to 12,748.60 and France's CAC up 0.4% to 5445.16. Italy's FTSE MIB index and Spain's Ibex were both down 0.1%.
The euro was down another 0.33% against the dollar to 1.1623 on Wednesday after slumping the day before on the back of US Federal Reserve Chair Jerome Powell's comments to the Senate Banking Committee, where he restated his faith in the health of the US economy and further gradual rises in interest rates.
Powell said the potential threat to growth from rising protectionism is "difficult to predict" and the Fed still views the risks to growth as "roughly balanced".
Eurozone inflation rose less than indicated in the preliminary release, with the consumer price index falling to 0.9% for June on an annual basis, from 1.0% in the initial reading.
Core CPI however was confirmed as having picked up to 2% year-on-year, as indicated in the preliminary release.
Car manufacturers were boosted by the prospect of negotiations to reduce tariffs, with European Commission President Jean-Claude Juncker travelling to Washington next week to push for negotiations to reduce automotive tariffs, Bloomberg reported.
Juncker is expected to signal that the bloc is willing to consider a 'plurilateral' sector deal to reduce car tariffs between Europe, the US and other major vehicle exporting nations.
Technology stocks were boosted by an overnight rally for Wall Street's tech sector and some positive news from its European counterpart.
Ericsson swung to a surprise operating profit for the second quarter, lifted by improved US sales growth as its core Networks division from 5G rollout. After seven quarters in the red, the Swedish mobile telecom equipment group said the company expressed confidence in meeting its 2020 profitability targets.
Elsewhere in European tech, Dutch semiconductor specialist ASML Holding reported a 25% improvement in net profit for the second quarter, after a 30% rise in sales came in better than expected. ASML said it expects the second half to be stronger, with sales and profitability continuing to improve.
Irish airline Ryanair said it plans to cancel only 1% of its flights during a strike by locally-based pilots on Friday, but the group is bracing for far wider industrial action across five countries next week.