Europe's STOXX 600 at two-week closing high in lead-up to Fed rate decision
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Kingfisher jumps after raising bottom-end of profit forecast
Spain's benchmark hits over nine-year high
Ryanair gains after CEO says sees better momentum in bookings
STOXX 600 up 0.4%
Updated at 1600 GMT
By Shubham Batra and Shashwat Chauhan
Sept 17 (Reuters) -Europe's STOXX 600 recorded its highest closing level in two-weeks on Tuesday, as global markets remained upbeat on the prospects of the U.S. Federal Reserve possibly opting for an outsized interest rate cut later this week.
The continent-wide STOXX 600 index .STOXX closed 0.4% higher, with most local bourses also clocking gains.
Spain's benchmark .IBEX jumped 1.1%, hitting its highest level in over nine years.
Retail .SXRP led gains amongst major STOXX sectors with a 2.8% rise, boosted by a 11.2% jump Kingfisher KGF.L after the B&Q and Castorama owner lifted the bottom end of its annual profit outlook.
Ryanair RYA.I gained 6.1% after CEO Michael O'Leary told Reuters that the airline has seen better momentum in bookings since last month and less need to cut prices, adding that annual profit was likely to be slightly down on last year but remained "very strong".
The travel and leisure subindex .SXTP, which houses most of Europe's airlines, advanced 2.2%.
Investors will be squarely focused on the Fed's decision on Wednesday, with markets now pricing in a 61% chance that the U.S. central bank could ease rates by 50 basis points, compared to a 34% chance seen a week prior, according to the CME FedWatch Tool.
"If the Fed doesn't initiate its easing cycle with 50-basis points surely a 25-basis point move will be enveloped by a dovish tone and offers the Fed the flexibility and gradualism in the event inflation remains even slightly elevated," said Quincy Krosby, chief global strategist at LPL Financial.
However, top brokerages such as Morgan Stanley and Deutsche Bank continue to expect the Fed to kick-off its policy easing cycle by a smaller 25-bps on Wednesday.
Back in Europe, the ZEW economic research institute said German investor morale darkened more than expected in September, with the sentiment index dropping 3.6 points from 19.2 points in August.
European defence firms such as Leonardo LDOF.MI, Rheinmetall RHMG.DE, BAE Systems BAES.L and Kongsberg Gruppen KOG.OL languished at the bottom of the STOXX 600, with a gauge of aerospace and defence stocks .SXPARO sliding 1.8%.
Traders pointed to a media report that Ukraine's allies are starting to look at a ceasefire.
Among other headlining stocks, Barry Callebaut BARN.S climbed 7.2% after Barclays raised the chocolate maker's rating to "overweight" from "underweight".
Playtech PTEC.L slid 5.2% after the British gambling technology firm agreed to sell its Italian unit Snaitech for 2.3 billion euros ($2.56 billion), including debt, to the world's largest betting company Flutter Entertainment FLTRF.L.
London-listed shares Flutter closed up 3.2%.
Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Sherry Jacob-Phillips and Aurora Ellis
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
