European stocks rebounded on Tuesday, as the dollar paused for breath and U.K. ten-year gilt yields slipped back after their recent surges.
The euro rose and the British pound stabilized after the Bank of England (BoE) vowed it “will not hesitate” to change interest rates by as much as needed, intending to reassure markets unnerved by last Friday’s budget.
The BoE governor said the central bank is closely monitoring the weakness in the pound amid the turmoil in markets which saw the pound fall to a record low against the dollar.
Markets widely expect a non-scheduled interest rate hike from the BoE if the currency situation does not improve.
The pan European Stoxx 600 rose 0.2 percent to 389.54 after declining 0.4 percent in the previous session.
The German DAX edged up marginally and France’s CAC 40 index edged up 0.2 percent while the U.K.’s FTSE 100 was down 0.4 percent.
Italian payments group Nexi jumped 4 percent. The company said it aims to generate excess cash of around €2.8bn in 2023-2025 which can be used for merger and acquisitions or to return to shareholders.
Akzo Nobel N.V. declined 1.3 percent. The Dutch maker of paints and performance coating said that it expects a decline in adjusted operating income for the third quarter amid high macro-economic uncertainty – especially in Europe and China leading to a fall in consumer confidence.
Jungheinrich AG shares added 2.6 percent. Hans-Georg Frey has decided to resign as member and also as Chairman of the Supervisory Board with effect from the end of the Annual General Meeting on 11 May 2023.
Hugo Boss fell 2.5 percent after Deutsche Bank downgraded the stock to ‘hold’.
Domino’s Pizza Group fell 2.5 percent. The pizza chain announced that Elias Diaz Sese, currently a non-executive director of DPG, will become Chief Executive Officer, on an interim basis.
AstraZeneca dropped 1.3 percent. The drug maker said that Selumetinib, sold under the brand name Koselugo, has been approved in Japan.
Shares of Oxford Metrics slumped 6.7 percent after the smart sensing software company said it is unlikely to meet its fiscal 2022 market expectations.
Travel food outlet operator SSP advanced 3.5 percent after guiding for full-year profits slightly higher than expectations.
JD Sports lost 2.2 percent. The company has been fined by U.K. competition regulator after being found guilty of price fixing on official merchandise.
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