European Shares Climb As BOJ Downplays Rate Hike Chances

(RTTNews) - European stocks climbed on Wednesday, tracking firm cues from Asian markets after Bank of Japan Deputy Governor Uchida Shinichi said the central bank won't raise interest rates when financial markets are volatile.

European Central Bank member Olli Rehn and board member Elizabeth McCaul are due to speak later in the day.

In economic releases, German industrial output grew 1.4 percent on month in June, according to data from Destatis. Production was expected to climb 1.0 percent after declining by revised 3.1 percent in May.

Germany's exports declined more than expected in June, while imports posted a moderate recovery, separate set of data revealed.

Elsewhere, revised official data showed Britain's economy grew more strongly than previously thought in 2022.

GDP jumped 4.8 percent in 2022, instead of the 4.3 percent previously estimated, the Office for National Statistics said in its annual revisions of historical data stretching back to 1997.

Also, separate data released by Halifax showed U.K. house prices increased by +0.8 percent on a monthly basis in July, following three relatively flat months.

The pan European STOXX 600 jumped 1.2 percent to 494.08 after rising 0.3 percent on Tuesday.

The German DAX gained 1.1 percent, France's CAC 40 surged 1.4 percent and the U.K.'s FTSE 100 added 0.8 percent.

Danish pharmaceutical giant Novo Nordisk tumbled 3.4 percent. The company trimmed its full-year profit outlook after missing estimates for its second-quarter operating profit.

Swiss pharmaceutical firm Roche gained 1.8 percent. The company is considering divesting cancer data specialist Flatiron Health, the Financial Times reported.

Dutch lender ABN AMRO rallied 3.7 percent after raising its forecast for full-year net interest income.

Coca-Cola HBC, a strategic bottling partner of The Coca-Cola Company, declined 2.5 percent in London after flagging macroeconomic headwinds in the second half of the year.

Glencore added 2 percent. The miner said it will not spin off its coal business after securing backing from the majority of its investors.

Vodafone rose over 2 percent after commencing its EUR 500 million shares buyback program.

WPP fell more than 2 percent. The communications services provider has agreed to sell its majority stake in FGS Global to KKR at an enterprise valuation of $1.7 billion, generating total cash proceeds to WPP of 604 million pounds after tax.

China-linked LVMH and Hermes were up 2 percent and 2.4 percent, respectively after the release of Chinese trade data.

China's exports grew less than expected at the start of the third quarter, while imports rebounded on domestic demand, official data showed.

TotalEnergies advanced 1.9 percent. The energy company said it has signed a deal to sell 50 percent of its stake in Total PARCO Pakistan Ltd. or TPPL to Gunvor Group, a Swiss commodity trading company for an undisclosed amount.

German car parts maker Continental surged 5.6 percent after announcing solid Q2 results.

Sportswear maker Puma plunged 12.4 percent after trimming its full-year profit forecasts.

Lender Commerzbank plummeted 4.6 percent after reporting a drop in quarterly profit. Nivea maker Beiersdorf fell 2.5 percent as Q2 earnings missed estimates.