PARIS (Reuters) – Major European stock markets rose on Wednesday morning amid rising risk appetite, particularly in new technologies and banks, despite imminent announcements from the U.S. Federal Reserve (Fed).

In Paris, the CAC 40 gained 1.15% to 7,561.10 points at around 08:00 GMT. In London, the FTSE 100 gained 1.24% and in Frankfurt, the Dax gained 0.81%.

The EuroStoxx 50 index rose by 1.13%, the FTSEurofirst 300 by 1.05% and the Stoxx 600 by 0.99%.

Futures on Wall Street are predicting a rise of 0.23% for the Dow Jones, 0.88% for the Standard & Poor’s 500 and 1.53% for the Nasdaq the day after a session in scattered order, marked by a certain caution before the decisions of the Fed.

After two days of debates, the Fed is expected to opt for a new status quo on its rates at 18:00 GMT, the markets estimate. The uncertainty is more about the future trajectory of borrowing costs and the speech by the chairman of the American central bank, Jerome Powell, will be particularly watched in this regard.

Meanwhile, on the European stock market, new technologies (+3.12%), banking (+0.23%) and finance (+0.57%) are in demand following several publications in the sector. Advanced Micro Devices raised its forecasts for chips for artificial intelligence (AI) on Tuesday evening, while Samsung Electronics reported on Wednesday a second-quarter operating profit multiplied by more than fifteen. The market is also digesting the results of Microsoft, whose Azure division grew by 29% in the second quarter.

In Europe, ASML jumped 7.2% after a Reuters report that a new U.S. rule on foreign exports of chip equipment to China would exempt some groups, including the Dutch manufacturer.

In banking, HSBC (+3.20%) announced a new share buyback plan of three billion dollars after posting a profit above expectations in the first half.

Other publications are livening up trading, particularly in luxury where L’Oréal is in the red after a second quarter slightly below expectations, with China continuing to weigh on the cosmetics giant. This could have an impact on Estee Lauder and Coty.

Airbus gained 4.76%, heading for its best single-session performance since February 2023, after reporting a smaller-than-expected drop in quarterly profit.

This allows the aerospace sector to gain 1.17% while Safran (+1.1%) confirmed its financial objectives after an increase in profit in the first half.

In Paris, the results of Danone (+4.21%), Bolloré (+0.43%), Teleperformance (+11.48%), Schneider Electric (+2.93%), Klépierre (+4.82%), Legrand (+5.84%) are also welcomed.

Elsewhere in Europe, GSK fell 1.94% as the company cut its vaccine sales outlook. Adidas advanced 1.44% on the back of second-quarter sales growth.

Siemens Healthineers plunged 6.75% as the group’s third quarter, impacted by persistent order delays in China, disappointed.

(Written by Claude Chendjou, edited by Blandine Hénault)

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