The key stock indicators of Western Europe show a spectacular increase on Wednesday. Market participants are analyzing the release of the quarterly reports of euro region companies, and are also waiting for the results of the US Federal Reserve meeting.
Thus, by the time of writing, the composite index of the leading companies in Europe STOXX Europe 600 increased by 0.31% - up to 427.46 points.
Meanwhile, the UK FTSE 100 rose 0.42%, the French CAC 40 gained 0.43% and the German DAX advanced 0.09%.
Rising and Falling Leaders
The value of securities of the Italian banking group Unicredit soared by 5.8%. The day before, the company reported an increase in net profit by 18.9% and revenue by 8% in annual terms.
The share price of the Norwegian oil and gas company Equinor rose by 2.1% on a report that over the past six months, its net profit in annual terms has tripled to $11.476 billion.
The market capitalization of Deutsche Bank AG plunged 3.6%. At the same time, the net profit of the largest German bank grew by 46% in the second quarter, and pre-tax profit was the highest in the last 11 years amid rising income from investment banking services.
Quotes of shares of the British bank Lloyds Banking Group rose by 3.3%. The day before, the company reported an increase in pre-tax profit in the second quarter.
The value of Credit Suisse Group AG securities rose 1.5%, despite the fact that on Tuesday the Swiss bank announced a net loss in the second quarter of $1.65 billion.
The market capitalization of German luxury car maker Mercedes-Benz Group AG rose 2.2%. The company improved its financial results for 2022 and reported an increase in adjusted profit and revenue in the second quarter.
The focus of European market participants on Wednesday is the expectation of the announcement of the results of the US Federal Reserve meeting. As analysts suggest, the management of the US central bank will decide on the next increase in the base interest rate by 75 basis points - 2.25-2.5%. However, some experts do not exclude the possibility of a more substantial rate hike - by 100 basis points at once amid record inflation in the country.
In addition, this week investors are closely watching the release of earnings reports for the second quarter of key banks and leading companies in the euro region and the world to assess the risks of a recession in the global economy.
