Financial sector pushes European stocks higher

European stocks opened slightly higher on Wednesday, rising for the sixth consecutive session supported by financial sector stocks, while traders awaited the US Federal Reserve’s monetary policy decision later on Wednesday.

According to Reuters, by 0822 GMT, the European STOXX 600 index rose 0.2%.

The financial services sector index rose 0.5%, supported by a 1.7% increase in the shares of the Spanish Bank Santander, which recorded unprecedented profits that exceeded expectations in the last quarter of 2023.

Investors’ attention is focused on the US Federal Reserve’s interest rate decision, scheduled to be issued at 1900 GMT, to obtain indications about the timing of reducing interest rates in the world’s largest economy.

Among the largest moving stocks on the index, the Danish pharmaceutical company Novo Nordisk rose 1.7%, recording its highest levels ever after the most valuable company in Europe expected to achieve double-digit sales and operating profit growth for another year, supported by Her weight-loss drug Wijovi is popular.

But H&M shares fell 8.9% to the bottom of the STOXX 600 index after the Swedish fashion retailer recorded a decline in profit margin in the fourth quarter, while its CEO decided to resign from his position.

Investors’ attention is focused on the US Federal Reserve’s interest rate decision, scheduled to be issued at 1900 GMT, to obtain indications about the timing of reducing interest rates in the world’s largest economy.

Among the largest moving stocks on the index, the Danish pharmaceutical company Novo Nordisk rose 1.7%, recording its highest levels ever after the most valuable company in Europe expected to achieve double-digit sales and operating profit growth for another year, supported by Her weight-loss drug Wijovi is popular.

But H&M shares fell 8.9% to the bottom of the STOXX 600 index after the Swedish fashion retailer recorded a decline in profit margin in the fourth quarter, while its CEO decided to resign from his position.