European equities advanced for the third consecutive day today, as investors awaited the Federal Reserve's interest rate decision and sifted through corporate earnings. The Stoxx Europe 600 index rose by 0.3%, propelled by gains in the retail and healthcare sectors, while utilities and energy sectors lagged.
Shares of Orsted (CSE:ORSTED) A/S took a hit after the company suspended two US wind projects, leading to larger impairment charges than expected. On the other hand, Next Plc and GSK Plc saw their shares rise following upward revisions to their profit outlooks.
The Federal Reserve is expected to keep interest rates at a 22-year high, with the possibility of an increase in December amid robust US economic growth. Although the European benchmark is close to a correction that could erase this year's gains, it has regained some lost ground this week.
Investors are scrutinizing earnings reports to gauge profit health as European economies slow down. They are also keeping an eye on the impact of the Israel-Hamas conflict on oil prices.
UK homebuilder stocks climbed today following an unexpected rise in house prices, indicating stability as the Bank of England approaches the end of its rate-hiking cycle. European mining stocks also experienced a boost as iron ore prices rallied.
Merger and acquisition activity involving Telefonica (NYSE:TEF), Liberty, Renault (EPA:RENA)'s Ampere, WeWork, Paycom (NYSE:PAYC) Software, and Vodafone (NASDAQ:VOD) is also drawing investor attention alongside the contracting London market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.