ROME: European stocks pushed higher Wednesday, on track for their best close in a week, following U.S. and Asian markets higher on the prospect of the Federal Reserve will hold off from a rate hike.
The Stoxx Europe 600 SXXP, +1.23% rose 1.1% to 360.07, with all but the basic materials group posting gains.
In Asian trading, Chinese stocks surged by the most in nearly three weeks. U.S. stocks DJIA, +1.40% SPX, +1.28% jumped Tuesday, with some analysts attributing the move to expectations the Fed will leave interest rates at their record low levels. The central bank’s two-day policy meeting begins Wednesday, with the decision expected Thursday.
“But before the Fed shows its hand tomorrow, we see U.S. CPI data today, which could move the dollar,” said Angus Campbell, senior analyst at FxPro, in a note. “Either way, the data is unlikely to be a game changer, as the overall U.S. inflation picture does not cry out for higher interest rates.”
In Frankfurt, Germany’s DAX 30 DAX, +0.60% was up 1% to 10,285.50. In Paris, the CAC 40 PX1, +1.14% popped up 1.4% to 4,632.47.
The U.K.’s FTSE 100 UKX, +0.91% gained 0.8% to 6,186.88.
In currencies, the pound GBPUSD, +0.3845% jumped to $1.5415 after the release of U.K. jobs data for July. Britain’s unemployment rate came in at 5.5%, lower than the 5.6% expected. Average wages, both including and excluding bonuses, rose 2.9%. The pound was buying $1.5344 ahead of the data, and traded at $1.5388 late Tuesday.
Movers: SAP SE SAP, +0.47% gained 2.6% following an ratings upgrade to overweight from neutral at J.P. Morgan. The German software maker has made it through the toughest part of its cloud transition, and “margins will trough this year and then gradually increase” about 50 basis points to 60 basis points each year over the next five years, said analyst Stacy Pollard in a research note.
