Europe close: Stocks edge higher
By Alexander Bueso
Date: Tuesday 18 Oct 2022
(Sharecast News) - European stocks finished higher again following the reversal of the UK government's tax cutting plans and reports the Bank of England may delay winding down its holding of bonds looked to have calmed markets.
The pan-European Stoxx 600 index was up 0.34% to 399.84, while the UK's FTSE 100 edged higher by 0.24% to 6,936.74 after Monday's humiliation for Prime Minister Liz Truss when her new finance minister Jeremy Hunt shredded her economic plan in a bid to quell market turmoil.
Gilt yields ticked lower below 4% while the pound was down 0.49% to 1.1486 against the euro and by 0.31% to 1.1323 versus the US dollar.
Dutch TTF natural gas futures retreated by €15.83 to €112.15/MWh.
Markets were also boosted by a positive US session with Goldman Sachs beating analysts' expectations.
Truss, whose future appears to be in doubt, struck a defiant tone overnight when she insisted she would lead the Conservative Party into the next election, due in 2024, even as MPs were openly calling for her to resign.
Meanwhile, Hunt had installed an advisory group of largely hedge fund managers, including Rupert Harrison from Blackrock, infamous for foisting austerity on Britain with then finance minister George Osborne after the financial crash of 2008.
In equity news, Sweden's Avanza Bank surged 12% after better-than-expected third-quarter profits.
Shares in THG rose after Japan's SoftBank said it was offloading its 6.4% stake in the UK ecommerce group for about £31m, ending its disastrous investment once worth around £500m.
Softbank is selling its holding to THG founder and chief executive Matthew Moulding and Qatar's sovereign wealth fund for about 39p a share.
UK housebuilders fell as Bellway reported softening demand amid the cost of living crisis and rising mortgage rates. Vistry, Barratt and property firm Derwent London were also lower.
Roche dipped as quarterly sales declined 6% after a slump in Covid-19 treatments and diagnostic testing.
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