European shares extended gains on Wednesday, as cautious traders awaited the outcome of the U.S. Federal Reserve’s two-day meeting later in the session for clues on monetary policy tightening in the face of surging inflation.
The pan-European STOXX 600 rose 1.1%, with all sectors in the black. Travel and mining stocks led gains.
The Fed will update its interest rate plan at 1900 GMT after its meeting, with markets priced for a first rate hike in March, and three more quarter-point increases by year-end.
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Hygiene products group Essity dropped 3.4%, after posting a bigger-than-expected fall in quarterly profit and saying it planned to raise prices further in the face of record high costs.
Italian fashion group Tod’s jumped 10.1% after announcing that sales last year rose by almost 40%, the first increase after five years of consecutive declines, beating market expectations.
Swiss drug contract manufacturer Lonza gained 2%, after reporting a 20% jump in 2021 core earnings, shored up by demand for the substances it supplies for new mRNA COVID-19 vaccines. (Reporting by Anisha Sircar in Bengaluru; Editing by Rashmi Aich)
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