European shares up on Wednesday

European shares saw gains in early trade on Wednesday as investors responded positively to Federal Reserve Chair Jerome Powell’s dovish remarks and focused on upcoming elections in France and the UK.

The pan-European STOXX 600 index rose 0.6 per cent as of 0845 GMT, marking its second increase in the last seven sessions. Powell’s comments about “significant progress” on inflation, coupled with his cautious stance on policy changes pending further data, buoyed market sentiment.

Technology stocks led the gains, with Dutch semiconductor companies ASMI and BE Semiconductor Industries rising 2.7 per cent and 6.3 per cent, respectively. Market analysts like Ipek Ozkardeskaya from Swissquote anticipated potential corrections in semiconductor stocks but expected other sectors to provide support.

Mining stocks also performed well, up 1.7 per cent, driven by higher copper prices amid a weaker dollar and supply concerns despite subdued demand from China.

In France, stocks climbed 1 per cent as parties mobilised against the far-right National Rally ahead of the weekend’s run-off election. Investors sought to prevent a potential majority for the RN, viewing such an outcome as market-positive.

Eurofins shares rose 3.1 per cent after the company addressed allegations from short seller Muddy Waters, reassuring investors.

Meanwhile, the UK’s FTSE 100 added 0.5 per cent ahead of its July 4 election, potentially marking a shift after 14 years of Conservative government.

Attribution: Reuters.