European Shares Rise After Powell's Testimony In Senate

(RTTNews) - European stocks traded higher in cautious trade on Wednesday as investors eyed the second round of testimony by Federal Reserve Chair Jerome Powell as well as key U.S. inflation readings for directional cues.

Ahead of key readings on U.S. consumer inflation and producer inflation later this week, Powell reiterated before the Senate Banking Committee on Tuesday that officials seek more evidence inflation is slowing down.

The pan European STOXX 600 rose 0.4 percent to 513.74 after falling 0.9 percent on Tuesday.

The German DAX and France's CAC 40 both added around half a percent, while the U.K.'s FTSE 100 was up 0.6 percent.

In corporate news, German automaker BMW fell about 1 percent after reporting weak vehicle deliveries in its second quarter.

Volkswagen declined 1.6 percent after a warning that it may close the Brussels site of its luxury brand Audi due to a sharp drop in demand for high-end electric cars.

Evotec surged 4.3 percent as it announced a collaboration with Pfizer Inc. (PFE) to advance drug discovery efforts in France.

Barratt Developments shares declined 2.2 percent in London. Citing high mortgage rates and broader economic concerns, the housebuilder said it is targeting to deliver fewer homes in the year ahead.

Construction materials firm Travis Perkins soared 5.7 percent after appointing a new chief executive.

Hostelworld Group, a social network powered Online Travel Agent focused on the hostelling category, plunged 5.4 percent despite reporting higher earnings in its first half and reiterating its fiscal 2024 adjusted EBITDA guidance.

Spanish gas grid operator Enagas rallied 4 percent after it agreed to sell its 30.2 percent stake in Tallgrass Energy to U.S. fund Blackstone for $1.1 billion.