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European stocks rose Wednesday after two straight sessions of declines, as investors looked ahead to comments by Federal Reserve Chairman Jerome Powell later and the central bank’s economic forecasts.
The Stoxx Europe 600 index SXXP, +0.36% rose 0.6% to 371.64, after Tuesday’s drop of 1.22%, which marked the biggest one-day percentage fall since May 29. The German DAX DAX, +0.12% gained 0.4% on the heels of a 1.6% drop, while the French CAC 40 PX1, +0.50% rose 0.7% and the FTSE 100 index UKX, +0.36% rose 0.5%.
The euro EURUSD, +0.27% inched up 0.1% to $1.1356.
U.S. stock futures also indicated a bounce for Wall Street, after Tuesday’s 300-point loss for the Dow industrials DJIA, -1.08% and a loss for the S&P 500 SPX, -0.78% though the Nasdaq COMP, +0.29% logged another record close. Investors continue to debate whether global equities have risen too far, too fast since the March lows brought on by the pandemic.
“The perception remains that stocks appear to be a one-way bet, given the support being proffered by central banks, as well as various fiscal measures, with all eyes on the conclusion of today’s Federal Reserve rate meeting,” said Michael Hewson, chief market analyst at CMC Markets, in a note to clients.
A Fed statement is expected at 2 p.m. Eastern Time (8 p.m. CET), followed by a press conference led by Powell. The central bank, which has thrown unprecedented financial support at markets, isn’t expected to reveal new support or change its dovish stance, but will unveil economic forecasts.
On the data front, French industrial production plunged in April, while China’s factory-gate prices fell deeper into deflation in May.
Within company news, Inditex ITX, +0.85% was in the spotlight after the Spain-based owner of Zara and other retail chains said it swung to a first-quarter loss, with a sharp fall in sales due to the pandemic. But it also said trends were improving in May as many economies began to reopen, and announced plans to close 1,200 stores to help integrate its bricks-and-mortar and online businesses. Shares rose 1%.
Airbus SE AIR, +1.79% shares rose 3.2% after the French government on Tuesday revealed a €15 billion ($17 billion) rescue plan for the aerospace industry and includes €7 billion for Air France, which had previously been announced. Shares of Air France AF, -3.32% fell 2.7%.
