Europe midday: Gains trimmed but Vistry leads housebuilder rally

by | Sep 11, 2023

(Sharecast News) – European shares trimmed morning gains by midday on Monday as investors looked ahead to a critical US inflation reading and an interest rate decision from the European Central Bank (ECB) later in the week for any indication on the path of global interest rates.
The pan-European Stoxx 600 gained was up 0.40% after a run of losses last week. All major regional bourses were higher.

US consumer prices data for August is due on Wednesday and the outcome of the ECB’s policy meeting Thursday.

“Interest rate debates remain a central plank in investor thinking, with more inflationary data to come this week which could move the needle,” said Interactive Investor head of markets Richard Hunter.

“While US markets remain comfortably ahead this year, there has been a slow downward glide path since August, when the relenting resilience of the economy led investors to the conclusion that further interest rate hikes could be on the horizon.”

“At the current time, it is almost universally expected that there will not be a change this month, with the consensus evenly split between a pause and a further hike in November.”

In equity news, UK housebuilder Vistry surged after announcing it would merge its home building and partnership operations and set new medium-term earnings forecasts. Peers Barratt, Persimmon and Taylor Wimpey were all up on the sentiment.

Covestro rose after the German chemicals firm said late on Friday it has entered into open-ended discussions with suitor Abu Dhabi National Oil Company (ADNOC) over a takeover approach.

Reporting by Frank Prenesti for Sharecast.com

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