LONDON — European markets closed higher on Wednesday, maintaining positive momentum after euro zone inflation rose unexpectedly.
The Stoxx 600 index preliminarily closed 0.79% higher, with technology stocks jumping 2.62%. Dutch chip firm ASML led the charge, rising as much as 10% before somewhat paring gains after a Reuters report suggested that the company could be exempted from expanded export restrictions on chipmaking gear to China.
Headline price rises in the 20-nation euro zone rose to 2.6% in July from 2.5% in June, the European Union’s statistics agency said Wednesday. Economists polled by Reuters expected the rate to hold steady.
It comes after second-quarter gross domestic product for the euro zone came in at 0.3% on Tuesday, slightly higher than expected.
Corporate earnings also remain in focus. HSBC shares rose after the bank recorded a narrow decline in pretax profit in the first half of the year but nonetheless outperformed analyst expectations, also announcing a $3 billion share buyback.
Sportwear giant Adidas nudged higher during the day, before pulling back and closing 2% lower, after posting 19% quarterly growth in European sales, though the decline of its Kanye West-founded Yeezy line pulled down North America’s performance. Deutsche Bank Research analyst Adam Cochrane said the main new detail versus Adidas’s prior trading statement was the regional breakdown, which revealed “impressive” 9% growth in China.
In the U.S., the Federal Reserve is expected to keep interest rates steady on Thursday. More important will be any forward guidance it chooses to provide, with markets currently pricing in a 100% probability of a rate cut in September.
In Asia, all eyes are on the Bank of Japan as it raised its benchmark interest rate to 0.25% from its previous range of 0% to 0.1% and outlined a plan to taper its bond buying program.
