LONDON: European equities rose on Wednesday before a US interest rate call, as investors digested results from energy giant BP, Barclays bank and telecom equipment giant Ericsson, alongside positive British data.
The capital's benchmark FTSE 100 index gained just 0.10 percent to 6,075.17 points in late morning deals and Frankfurt's DAX 30 grew 0.63 percent to 7,403.19 points.
In Paris, the CAC 40 advanced 0.50 percent to 4,065.32, while Stockholm's OMX index firmed 0.20 percent to 1,166.70 points.
Later on Wednesday, investors will switch their focus to the outcome of the US Federal Reserve's two-day policy meeting.
The central bank's Federal Open Market Committee is widely expected to maintain interest rates at between zero and 0.25 percent, where they have stood since December 2008.
Fed Chairman Ben Bernanke will meanwhile hold his first post-FOMC press conference -- the first for any Fed chairman.
"The main focus today is the FOMC policy announcement and Bernanke press briefing," said VTB Capital economist Neil MacKinnon.
In London, BP shares gained 1.43 percent to 470.85 pence after the energy group posted a 17-percent jump in first-quarter net profits.
Earnings after taxation leapt to $7.124 billion (4.9 billion euros) on the back of surging oil prices, one year after being hit by the US oil disaster.
However, BP also upgraded the cost of last year's devastating Gulf of Mexico spill to $41.3 billion. That compared with previous guidance of $40.9 billion.
Across in Stockholm, Swedish telecom equipment maker Ericsson revealed that net profits rocketed 224 percent to 4.1 billion kronor (460 million euros, 675 million dollars) in the first-quarter.
The figure was higher than the three billion kronor which analysts consulted by Dow Jones Newswires had expected.
In reaction, Ericsson shares soared 9.57 percent to stand at 88.15 Swedish kronor.
On the downside, British bank Barclays saw its share price drop after revealing that net profits fell in the first quarter, hit by falling revenues at its investment banking division.
London investors meanwhile digested news that the economy rebounded in the first three months of the year, in line with market expectations.
British gross domestic product (GDP) increased by 0.5 percent in the first quarter of 2011, after a slumping by 0.5 percent in the fourth quarter of 2010, official data showed.
"The main event for the UK was that GDP release, which came in at 0.5 percent as expected. As usual, stocks barely flinched on the news," noted IG Index analyst David Jones.
Asian shares were mixed on Wednesday despite a solid lead from Wall Street following strong earnings by top US firms, with traders in Japan ignoring a cut in the country's debt rating outlook.
Tokyo gained 1.39 percent, while Hong Kong shares fell 0.48 percent, mirroring losses on the mainland amid rising concerns that Beijing will introduce fresh measures to rein in property prices.
Comments
Comments are closed for this article.