Strong results boost European shares ahead of Fed meeting; LVMH slides

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The STOXX 600 index rose 0.2%, but investors were cautious amid Europe’s energy supply worries with focus also on the U.S. Federal Reserve for clues on the path of future rate hikes.

The Fed is expected to hike its key interest rate by 75 basis points.

Italy’s MIB index jumped 1%, leading gains among regional peers. Shares of UniCredit rose 6.8% as the lender raised its 2022 outlook after a strong second quarter.

France’s CAC 40 index fell 0.1% as LVMH lost 2.0%. LVMH struck a cautious note on the pace of recovery in the key Chinese market after lockdowns in China hit Asian revenue.

Reckitt Benckiser, maker of Dettol and Lysol cleaning products, rose 6% as it raised its full-year revenue forecast after steep price hikes helped it beat second-quarter sales expectations.

However, a 3.4% slide in miner Rio Tinto (NYSE:RIO), after a drop in first-half profit, capped gains on London’s blue-chip FTSE 100 index. (L)