European Shares Gain As Largest UK Lenders Pass Stress Tests

(RTTNews) - European stocks rose on Wednesday to extend recent gains as focus shifted to U.S. inflation data due later in the day, expected to show moderation in price pressures.

That said, sticky inflation and rising core-inflation numbers could lead to market volatility later in the day.

U.K. stocks outperformed regional peers after the Bank of England said its annual stress test of eight major lenders showed that each could cope with rising interest rates in a stressed environment, and none would need to raise additional capital.

The pan European STOXX 600 was up 0.8 percent at 455.24 after three sessions of gains.

The German DAX and France's CAC 40 both climbed around 0.8 percent, while the U.K.'s FTSE 100 rallied about 1 percent.

British banks Barclays, HSBC, Lloyds, NatWest Group and Standard Chartered all rose over 1 percent following the release of the Bank of England's financial stability report.

Tullow Oil tumbled 3.3 percent. The Irish oil and gas company has reaffirmed its crude oil production outlook for full year 2023.

Springfield Properties rose about 1 percent after it has appointed Iain Logan as the chief financial officer.

Recruiter Pagegroup jumped 3 percent despite reporting a lower second-quarter gross profit.

Supermarket chain Tesco added 1.6 percent as it announced continuation of existing 750 million pounds share buyback program.

Swiss Re rose 0.7 percent after its Board of Directors has proposed Jacques de Vaucleroy, who currently acts as chair ad interim, for election as Chairman at next annual general meeting in April 2024.

Norway's largest bank DNB gave up 1.4 percent despite reporting better-than-expected second-quarter earnings.

Technology stocks traded higher, with Infineon and ASML Holding climbing 3-4 percent after Jefferies raised its price target on the stocks.

Thales Group shares rose 2.4 percent in Paris. The French defense and technology group said that it started negotiations to acquire Cobham Aerospace Communications, a supplier of safety cockpit communication systems, for $1.1 billion.