Sharecast News
16 Sep, 2020 09:21

Europe open: Inditex provides a boost as investors await Fed

European shares were again in positive territory at the start of trade on Wednesday with Zara owner Inditex boosting sentiment after reporting a return to profits.

The pan-European STOXX 600 index was slightly higher, up 0.36% with all major bourses in the green apart from London’s FTSE 100.

Investors are holding fire ahead of the US Federal Reserve’s policy announcement later.

Inditex said it saw a 74% jump in first-half online sales. Shares in the company rose by more than 5%, taking the stock to the top of the gainers board.

Shares in Swedish fashion retailer H&M continued their positive run after reporting a stronger-than-expected recovery from the coronavirus lockdown.

German financial services firm Grenke saw its shares slump by almost 20% after the country’s industry watchdog BaFin said on Tuesday it was looking into allegations of market manipulation following a critical report by a short-seller.

Grenke strongly rejected allegations made in the report by Fraser Perring of Viceroy Research.

“This report contains allegations which Grenke strongly rejects. A central accusation is that a substantial portion of the €1.078bn in cash and cash equivalents reported in the 2020 half-year financial report does not exist. This is demonstrably false.”

UK house builders were also out of favour after Redrow reported a slump in full year profits due to Covid-related impairments on its London operations. Bellway and Taylor Wimpey were lower on the news.

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Important Legal Notice about News Sources

 

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.