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European shares climbed on Wednesday, lifted by strong corporate results and bid activity, including a move HeidelbergCement to take control of Italcementi.
The pan-European FTSEurofirst 300 index rose 0.8 per cent, while the euro zone’s blue-chip Euro STOXX 50 index moved up 0.7 per cent. Both are up around 14 per cent so far in 2015.
Global stock markets have lost ground over last month due to concerns over China’s economy and Greece’s debt crisis, but a stabilisation of the volatile stock markets in Shanghai and Shenzhen on Wednesday propped up Asian shares.
In Europe, Italcementi jumped up around 50 per cent on Wednesday after HeidelbergCement agreed to buy control of it.
British property company Quintain Estates rose over 20 per cent after a bid from private equity firm Lone Star.
Carmaker Peugeot gained 3.4 per cent after it reported positive first-half net income for the first time in four years.
Oil major Total rose after reporting higher-than-expected second quarter profits.
Schneider Electric fell 1 per cent after lowering full-year forecasts due to persistent weakness in China.
“The results from European companies have been reasonably reassuring so far, although China is impacting a few of them,’’ said Mirabaud Securities' senior equity sales trader John Plassard.
According to Thomson Reuters StarMine data, 53 per cent of companies on the pan-European STOXX 600 index have beaten or met market expectations with their results so far this quarter.
Fed policy statement
Investors were by and large expected to trade cautiously before a policy statement from the US Federal Reserve later in the day.
The US central bank is expected to point to a growing economy and stronger job market as it sets the stage for a possible interest rate hike in September.
Higher rates can often hit stock markets, as they boost returns on bonds and cash, and can result in bigger debt costs for listed companies.
But some traders said the outlook for European shares was good. Even if rates go up in the United States, they are expected to stay at record lows in Europe, while the European Central Bank is boosting liquidity to stimulate economic growth in the region.
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