European Shares Gain Ahead Of Fed Decision

European stocks traded higher on Wednesday, with Fed pause hopes and encouraging data from Germany and the U.K. helping underpin sentiment.

Signs of moderating U.S. inflation reinforced bets the Federal Reserve would skip a rate hike later in the day.

Eurozone industrial output rose more than expected in April, helping ease concerns surrounding the economic outlook.

Industrial production rose 1.0 percent in April compared with the previous month after an upwardly revised 3.8 percent fall in March, Eurostat reported.

Elsewhere, data showed retailers and the film industry helped Britain’s economy inch higher in April as expected.

GDP grew by 0.2 percent month-on-month in April, the Office for National Statistics said, coming in line with analyst estimates.

The pan-European STOXX 600 rose half a percent to 465.34 after rising 0.6 percent on Tuesday.

The German DAX gained half a percent, France’s CAC 40 climbed 0.7 percent and the U.K.’s FTSE 100 was up 0.3 percent.

German footwear conglomerate Puma rose about 1 percent. The company announced a reorganization to improve alignment across key business categories.

Machinery manufacturer Heidelberger Druckmaschinen slumped 4.7 percent after issuing a cautious outlook for the new financial year.

Construction equipment manufacturer Wacker Neuson jumped 6.3 percent after saying it aims to grow revenue by 78 percent by 2030 and increase profitability.

Ladbrokes-owner Entain plunged 11 percent on news it would buy Poland-based sports betting operator STS Holdings for 750 million pounds ($946 million).

Self-storage company Safestore Holdings fell more than 2 percent after its pre-tax profit declined 64 percent in the first half of fiscal 2023 despite higher revenue.

Oil & gas giant Shell gained half a percent after it announced plans to ramp up dividend and share buybacks.

Spanish drug maker Grifols soared 6.5 percent after it announced plans to divest shares in Shanghai RAAS for estimated proceeds of $1.5 billion.

Computer accessories maker Logitech plummeted over 9 percent on news its CEO and President Bracken Darrell is leaving for another job.

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