European Shares Climb As Focus Shifts To Elections

(RTTNews) - European stocks advanced on Wednesday as traders reacted to dovish comments from Federal Reserve Chair Jerome Powell and looked ahead to key elections in France and the U.K.

On Tuesday, Powell acknowledged progress in disinflation but added that officials need more confidence before cutting interest rates.

Over 200 candidates have withdrawn from France's runoff election to block far-right, as Macron and left-wing coalition unite.

Marine Le Pen said that the National Rally would still try and form a government even if they failed to achieve an overall majority.

Elsewhere in the U.K., the Labour Party is set to grab 484 out of the total 650 seats in the Parliament, a pre-poll company Survation projected.

In economic releases, the Eurozone PMI Services index has been finalized at 52.8, slightly down from May's 53.2.

Eurozone producer prices posted an annual fall of 4.2 percent in May after a 5.7 percent decrease in April.

The pan European STOXX 600 climbed 0.6 percent to 514.12 after falling 0.4 percent in the previous session.

The German DAX jumped 0.8 percent, France's CAC 40 rallied 1.1 percent and the U.K.'s FTSE 100 was up half a percent.

In corporate news, Swedish construction company Skanska rose about 1 percent after securing a contract worth $97 million.

Belgiam postal company Bpost slumped 6.5 percent after its annual profit guidance missed expectations.

Higher copper prices boosted mining stocks, with Antofagasta and Glencore both rising around 2 percent in London.

Retailer JD Sports fell nearly 2 percent after Barclays downgraded the stock to "underweight" from "equalweight".

Topps Tiles tumbled 3.3 percent after the tile retailer reported a sales drop in its third quarter.

Technology company Johnson Matthey rallied 2.6 percent after launching a share buyback program.

French aerospace major Airbus jumped 2.3 percent after it received a $24 billion order from Philippines' budget airline operator Cebu Air Inc. for up to 152 A321neo aircraft.

Volkswagen gained more than 1 percent after U.S. electric vehicle maker Rivian said it had no plans to produce vehicles with the German automaker.