Nov 22 (Reuters) – European stocks rose to a two-month high on Wednesday led by real estate stocks, while software company Sage soared to a record high on strong annual operating profit and a share buyback plan.
The pan-European STOXX 600 index (.STOXX) rose 0.2% by 0937 GMT, with real estate stocks (.SX86P) leading sectoral gains, rising 1.1%.
Furthermore, the Eurozone stock volatility indicator (.V2TX) continued its downward trend, hitting its lowest level since July.
Meanwhile, eurozone bonds were little changed as central bankers did little to defy investors’ hopes that interest rates would be lower next time.
Minutes from the Federal Reserve’s last policy meeting showed officials agreed to proceed “with caution” and only raise interest rates if inflation spikes again. European Central Bank President Christine Lagarde said victory was not yet won and bets would be made based on short-term data flows. Too early.
“The big picture hasn’t changed all that much. I don’t think there’s a big positive catalyst as the market is approaching a fairly high valuation, but investors are still holding out thinking things will get better soon, and that’s why they We’ve been saying that for a year,” said Michael Field, European market strategist at Morningstar.
Among individual stocks, Sage (SGE.L) surged 10.1% to top the STOXX 600 index after announcing an 18% increase in full-year real operating profit and forecasting that margins will continue to increase this year. It became. The British company also announced a £350m share buyback programme.
Thyssenkrupp (TKAG.DE) soared 5.9% after Germany’s submarine anti-steel group reported full-year results with “strong” free cash flow.
Hugo Boss (BOSSn.DE) rose 2.4% after Deutsche Bank and BofA Global Research upgraded their ratings on the German fashion brand’s shares.
Adevinta (ADEA.OL) rose 5.2% after a consortium led by Permira and Blackstone (BX.N) made an offer to buy the online advertising group for about NOK 141 billion ($13.1 billion).
Monte dei Paschi di Siena (BMPS.MI) recovered 0.7% after falling 7.9% on Tuesday as Italy sold a 25% stake in the bailed-out bank. Meanwhile, rating agency Moody’s raised the bank’s rating by one notch, confirming that its outlook is positive.
Meanwhile, home improvement retailer Kingfisher (KGF.L) lowered its full-year profit forecast for the first time in three months, resulting in a 6.8% decline.
Report by Ankika Biswas in Bengaluru.Editing: Sonia Cheema
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