Europe open: Banks pace early gains after Fed
Airbus Group N.V.
€156.14
14:39 26/04/24
Stocks have started the morning higher, with banks in the lead following the US central bank's policy announcement the night before with global capital markets apparently generally unruffled by the Federal Reserve's indications that it is looking to push ahead with multiple rate increases and balance sheet taper over the medium-term.
CAC 40
8,082.21
14:39 26/04/24
DJ EURO STOXX 50
4,939.01
23:59 25/04/24
As of 1030 BST, the benchmark Stoxx 600 was up by 0.22% or 0.80 points to 382.78, alongside a gain of 0.28% or 35.84 points to 12,605.01 and a rise of 0.54% or 28.50 for the Cac-40.
In parallel, euro/dollar was ahead by 0.21% to 1.1915 and the yield on the benchmark 10-year German bund by three basis points to 0.48%, alongside a four basis point rise in yields for similarly-dated Spanish debt.
Meanwhile, the Stoxx 600's gauge for lenders' shares was higher by 1.57% or 2.87 points to 186.05.
Commenting on the Fed's signal that the possibility of a December rate hike remained on the table, CMC Markets' Michael Hewson said: "It also remains to be seen whether the Fed’s optimism about the prospects of a December rate rise survive first contact with the economic data between now and then, as it becomes clear the extent of the damage caused to the US economy in the third quarter."
To take note, also overnight the Bank of Japan opted to keep all its main polciy settings unchanged.
On the economic front in Europe, Norway's central bank kept its main policy rate unchanged at 0.50%. Also on traders' radar for Thursday was a speech from the European Central Bank chief Mario Draghi at 1515 BST, although traders believed it was unlikely he would deliver anything new in the wake of the Fed's announcement overnight.
"The ECB has been careful to keep at least one step behind US policymakers for fear of over-inflating the euro. However, the Fed’s taper decision opens up the way for a growing Europe to begin unwinding its own colossal balance sheet.
"ECB President Mario Draghi has promised a decision before the end of the year, but it’s unlikely he’ll pick a speech in Frankfurt today to confirm it," said Interactive Investor's head of equity strategy, Lee Wild.
Still on the economic calendar, the European Commission was due to release its latest reading on euro area consumer confidence index, for the month of September.
Later in the day, in the States, the Philly Fed was scheduled to release its influential regional factory sector index for September at 1330 BST. In the wake of the recent hurricanes in the US, investors were also keen to see the latest weekly unemployment claims data in order to better gauge the potential short-term disruptions to the economy.
Commerzbank was set to announce 1,700 layoffs at its Frankfurt headquarters, Reuters reported citing a local broadcaster, less then the 2,400 which had originally been feared.
In parallel, Air Berlin's creditors were set to discuss offers for the bankrupt carrier's assets.
Meanwhile, in Austria, a parliamentary inquiry found that Airbus did not illegally influence the country's politicians in a recent $2bn deal for Eurofighter combat jets.