Strong results boost European shares ahead of Fed meeting; LVMH slides

Strong results boost European shares ahead of Fed meeting; LVMH slides

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 21, 2022. REUTERS/Staff

July 27 (Reuters) – European shares inched up on Wednesday following strong results from Britain’s Reckitt Benckiser and Russia-exposed lender UniCredit, while a drop in heavyweight luxury stock LVMH capped gains.

The STOXX 600 index (.STOXX) rose 0.2%, but investors were cautious amid Europe’s energy supply worries with focus also on the U.S. Federal Reserve for clues on the path of future rate hikes.

The Fed is expected to hike its key interest rate by 75 basis points. read more

Italy’s MIB index (.FTMIB) jumped 1%, leading gains among regional peers. Shares of UniCredit (CRDI.MI) rose 6.8% as the lender raised its 2022 outlook after a strong second quarter. read more

France’s CAC 40 (.FCHI) index fell 0.1% as LVMH (LVMH.PA) lost 2.0%. LVMH struck a cautious note on the pace of recovery in the key Chinese market after lockdowns in China hit Asian revenue. read more

Reckitt Benckiser (RKT.L), maker of Dettol and Lysol cleaning products, rose 6% as it raised its full-year revenue forecast after steep price hikes helped it beat second-quarter sales expectations.

However, a 3.4% slide in miner Rio Tinto (RIO.L), after a drop in first-half profit, capped gains on London’s blue-chip FTSE 100 index (.FTSE).

Reporting by Susan Mathew in Bengaluru; Editing by Shounak Dasgupta