European Shares Flat To Higher On China Stimulus Talk

European stocks were flat to slightly higher on Tuesday after Chinese authorities pledged more support measures to boost growth in the world’s second-largest economy.

Sentiment was also underpinned by hopes for an end to the United States’ aggressive monetary tightening as a two-day meeting of the Federal Reserve gets underway later today.

Meanwhile, German business confidence deteriorated for the third straight month in July, a monthly survey conducted by the ifo institute showed today.

The business climate index fell to 87.3 in July from 88.6 in the previous month. The expected score was 88.0.

The pan European STOXX 600 inched up 0.2 percent to 466.63 after ending flat with a positive bias on Monday.

The German DAX and France’s CAC 40 were marginally higher, while the U.K.’s FTSE 100 was up 0.2 percent, led by miners.

Anglo American jumped 4.5 percent, Antofagasta rallied 4.3 percent and Glencore added 2.6 percent as metal prices advanced after China’s pledge to step up support for its sputtering economy.

Swiss banking major UBS Group AG rose about 1 percent after it has been fined $400 million by U.S., Swiss and U.K. banking authorities for misconduct by Credit Suisse, which UBS acquired in June 2023.

British consumer goods giant Unilever soared 5 percent after Q2 sales beat estimates.
Ashtead Group dropped 1.2 percent after pricing its $750 million offering in the U.S. of 5.950 percent senior notes due 2033.

French software maker Dassault Systemes SE slumped 3.7 percent after posting muted revenue growth in the second quarter.

Spirits group Remy Cointreau rallied 3.6 percent after backing its FY24 view.

Défense electronics and cybersecurity company Thales dropped 1 percent after it agreed to buy U.S. cybersecurity company Imperva in a deal worth $3.6 billion.

Catering group Sodexo fell 2.7 percent after expanding its footprint in Brazil with a strategic partnership.

Bayer Group added 1.7 percent despite the German company cutting its fiscal year 2023 outlook, citing further deterioration in demand for glyphosate-based products.

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