July 30 2024: European shares opened higher on Tuesday, driven by gains in technology and oil stocks. Investors remained cautious ahead of the Federal Reserve’s meeting and the release of Eurozone inflation data.
The pan-European STOXX 600 index rose by 0.2% to 512.61 points by 0716 GMT, with the food and beverages sector limiting overall gains.
Diageo (LON) saw an 8% drop in its stock after reporting a 4.8% decline in annual profit, which fell short of analyst expectations.
The basic resources sector fell 0.7% as base metal prices declined due to slowing global growth and a shift towards risk-off sentiment, with aluminium and zinc hitting three-month lows.
BP (NYSE) rose by 2% after reporting a second-quarter profit of $2.76 billion, exceeding market expectations. The company also announced an increase in its dividend and an extension of its share repurchasing program, boosting the oil sector by 0.7%.
Among individual stock movements, Standard Chartered (OTC) gained 4.7% after announcing its largest share buyback of $1.5 billion and raising its annual earnings forecast.
St James’s Place surged by 17.8% as the British wealth manager revealed plans to cut costs by tens of millions of pounds.
The technology sector increased by 0.5% ahead of Microsoft’s (NASDAQ) earnings report later in the day.
Meanwhile, the U.S. Federal Reserve will commence its two-day monetary policy meeting later today.
Investors are also awaiting Eurozone inflation data, which is expected to be released at 0900 GMT.
