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European stocks rise; German producer prices rose to record levels

European stocks rise;  German producer prices rose to record levels

Written by Peter Norse

Investing.com – European stock markets rose on Tuesday, following the global upward trend, although sentiment remained fragile ahead of the start of the US Federal Reserve’s two-day monetary policy meeting.

By 04:00 ET (08:00 GMT), trading in Germany was up 0.1%, in France it was up by 0.1%, and in Britain it was up by 0.4%.

European shares are seeing a rebound from last week’s sell-off, drawing from the positive close on Wall Street, as the major US averages jumped from 9-week lows.

However, the gains are temporary before the start of the trading day, which is widely expected to lead to another 75 basis point rate hike after last week’s higher-than-expected numbers.

The Fed won’t be alone in raising interest rates this week, with Sweden up a full percentage point earlier on Tuesday, and the and in Norway are expected to largely follow suit.

German producer prices were up in August, up from a year earlier, likely adding pressure on the company to keep raising rates.

Both numbers were records in the Federal Republic’s 83-year history and were well above analysts’ expectations.

In corporate news, Unicredit (BIT:) stock rose 1.8% after the CEO of Italy’s second largest bank, Andrea Orcel, told German daily Handelsblatt that the lender was looking at acquisitions in Germany as part of its plans to become a fully developed European. bank.

Bachem Holding (SIX 🙂 stock rose 9% after the Swiss biotech supplier signed two new contracts for peptides.

on the flip side, kingfisher LON: LON: stock fell 5.8% after the home improvement retailer reported a 30% drop in earnings as it battled rising raw material prices and slowing sales.

Oil prices stabilized on Tuesday before the start of the two-day Federal Reserve meeting that is expected to lead to further monetary tightening to combat inflation, which could halt economic growth and demand for crude oil.

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The agency, an industry body, releases its latest estimate of US crude stocks later in the session, with last week’s figure showing a massive addition of 6 million barrels.

By 04:00 ET, futures were up 0.5% at $85.78 a barrel, while the contract was up 0.7% at $92.65.

In addition, it rose 0.1% to $1,680.05 an ounce, while trading 0.1% higher at 1,0034.

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