Market Analysis
European stocks made modest gains on Wednesday, supported by defensive sectors amid ongoing uncertainty regarding China's stimulus measures. The STOXX 600 index was up 0.1% as of 0711 GMT, with investors favoring utilities, healthcare, and real estate—industries viewed as safer investments during turbulent times.
The benchmark index had hit a two-week low in the previous session, primarily due to losses in mining and luxury sectors sensitive to China's economic developments, as investors expressed disappointment over the absence of new stimulus initiatives from Beijing.
Attention is now focused on an upcoming news conference by China's finance ministry on Saturday, which is expected to provide insights into potential fiscal stimulus measures.
Key market drivers this week also include U.S. inflation data set to be released on Thursday and the commencement of the U.S. earnings season.
In stock-specific news, UK-listed Rio Tinto (NYSE: RIO) saw a 0.7% decline after announcing its acquisition of Arcadium Lithium for $6.7 billion, a move that positions it among the largest lithium producers globally.
Conversely, shares of Continental surged nearly 3% following the company's forecast of improved profitability in its automotive sector for the third quarter.
Struggling German battery manufacturer Varta experienced a significant jump of about 27% after announcing that Porsche AG would invest in its large-format lithium-ion cell business unit.
Paraphrasing text from "Reuters" all rights reserved by the original author.