European equity markets consolidate gains
By Rob Griffin
10:16, 23 September 2021
European equity markets consolidated recent gains on Thursday morning after the US Federal Reserve (the Fed) meeting failed to throw up any curveballs.
The Euro Stoxx 50 led the way with a 1.34% increase to 4,205.17 points, followed by Germany’s DAX, which rose 1.2% to 15,695.85.
France’s CAC 40 also made a 1.1% gain to 6,712.96 points, while the FTSE 100 edged up a more cautious 0.47% to 7,115.75 points by mid-morning in London.
Energy and retail lead
The FTSE 100’s advance was led by energy and retail stocks, although investors were waiting for more information on the inflation outlook from a Bank of England (BoE) meeting.
Mining company Antofagasta was the strongest performer with a 3.24% rise, followed by the 2.67% uplift for Rolls-Royce Holdings and a 2.47% increase enjoyed by Glencore.
Halma, Ferguson and JD Sports Fashion were also among the winners in early trading, with each making gains of at least 1.2%.
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Fed meeting “Nothing to upset the apple cart”
Russ Mould, investment research director at AJ Bell, said there was nothing from the US Fed meeting to “upset the apple cart”, with tapering still coming soon.
“There is unlikely to be any movement from the Fed’s counterparts at the BoE later today – despite inflationary pressures creeping up,” he said.
However, Mould expects to see some kind of signal on when the BoE’s own asset purchases will be scaled back and if a UK rate rise could be in the works next year.
Read more: Markets close: Fed meeting helps US shares break losing streak