Europe close: Stocks extend gains, travel issues lead
By Alexander Bueso
Date: Wednesday 26 Jan 2022
(Sharecast News) - European shares extended their gains, as the rally from Monday's sell-off continued on Wednesday, as investors waited on news from the US Federal Reserve's two-day meeting later in the day.
The pan-European Stoxx 600 was up 1.68% at 467.31, with travel and leisure stocks leading gains. Investors are looking for guidance on the timing of already-announced rate rises.
In parallel, Germany's Dax was up by 2.22% to 15,459.39, alongside a 2.27% rise on Milan's FTSE Mibtel to 26,619.25.
Eyes were also on geopolitical tensions on the Russia-Ukraine border, with Russian and Ukrainian negotiators meeting for talks with French and German advisors in Paris.
In equity news, hygiene products group Essity dropped, after posting a bigger-than-expected fall in quarterly profit and saying it planned to raise prices further in the face of record high costs.
In terms of individual share price movement, shares in Britain's Allfunds Group edged up after Citigroup upgraded the company's stock to 'buy' from 'neutral'.
Swiss drug contract manufacturer Lonza dipped 0.3%, after reporting a 20% jump in 2021 core earnings, shored up by demand for the substances it supplies for new mRNA COVID-19 vaccines.
Travel and leisure stocks were also in demand, with Lufthansa, BA and Iberia owner IAG, cruise operator Carnival and holiday firm TUI all making gains.
Gambling software maker Playtech fell after it again urged shareholders to accept a £2.7bn takeover offer from Australia's Aristocrat Leisure following reports that it is planning a breakup and sale of the group if the bid is blocked by a bloc of Asia-based investors.
Precious metals miner Fresnillo tumbled as it cut its production guidance, citing operational challenges and new labour laws.
Shares in Quilter fell sharply despite the fund manager reporting a strong final quarter of 2021, with improved year-on-year net flows, it said on Wednesday.
Care home operator Orpea crumbled on claims of mistreatment made against the company by a book to be published this week. The company has denied the allegations.
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