Europe close: Stoxx 600 inches higher as London stocks jump
By Benjamin Chiou
Date: Wednesday 20 Aug 2025
(Sharecast News) - European stocks were mixed on Wednesday, with strong gains in London and Zurich countered by falls in other markets, with investors focused on developments at the Jackson Hole conference in Wyoming.
The UK's FTSE 100 benchmark finished the session 1.2% higher to hit another all-time high of 9,298.29, while Switzerland's SMI gained 0.5% to reach 12,276.26, its highest level since early June. However, markets in Frankfurt, Paris, Milan and Madrid registered mild losses of between 0.1% and 0.6%.
As a result, the Stoxx 600 finished the session up just 0.2% at 559.09 - albeit its third straight gain as the pan-European benchmark nears its record-high close of 563.13 registered on 3 March.
Traders were generally cautious ahead of the Wednesday evening release of minutes from the latest Federal Reserve meeting, as speculation grows about an expected interest-rate cut in September.
At the same time, a close eye was being kept on the Jackson Hole Economic Symposium in Wyoming, which runs from Thursday to Saturday, as central bankers from across the world meet for their annual conference.
Fed chair Jerome Powell, who is scheduled to speak on Friday morning, typically uses Jackson Hole as a platform to give an indication on upcoming monetary policy moves, according to Atakan Bakiskan, US economist at Berenberg. However, things are a far from typical this time around, with recent mixed data - inflation has picked up as jobs growth has slowed - "offer[ing] no clear direction for the federal funds rate", Bakiskan said.
"Powell may avoid sending a definitive message and instead stress the importance of August inflation and employment reports in shaping the next rate decision. Both will be released before the 17 September meeting," Bakiskan added.
Inflation in focus
UK consumer price inflation rose at an annual rate of 3.8% in July, rising from 3.6% in June and ahead of the 3.7% consensus estimate. The core rate - which strips out energy, food, alcohol and tobacco - rose to 3.8% from 3.7%.
Eurozone inflation was confirmed at 2.0% in July, according to final estimates by Eurostat, matching the preliminary numbers and in line with the European Central Bank's target for the second month in a row.
Meanwhile, wholesale prices in Germany unexpectedly fell in July, with the annual rate of deflation picking up to a 13-month high, according to Destatis. The producer price index unexpectedly fell 0.1% last month after a 0.1% increase in June, leaving the PPI down 1.5% compared with last year following a 1.3% fall in June.
Market movers
Defensive stocks in London provided the FTSE 100 with a big boost on Wednesday, including utility names United Utilities and Severn Trent, insurer Admiral and tobacco brands British American and Imperial.
United Utilities was also a high riser as Barclays upgraded the stock to 'overweight' from 'equalweight' and lifted the price target to 1,535p from 1,280p.
However, it was UK-listed Convatec which was the top gainer in Europe as the medical products company launched a share buyback programme of up to $300m.
Danish wool manufacturer Rockwool saw its share price plummet 16% after cutting its financial forecasts for the full year due to a "challenging market environment". The company said it expects revenues to be flat, compared with previous guidance of low single-digit growth, while EBIT margins are now predicted to be below the targeted 16% level.
Also lower was Swiss-American pharma and medical device company Alon after a mixed second-quarter report, in which earnings beat forecasts but revenues came up short.
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