# European shares kick off November on bright note Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-02 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: European Shares Gain on Hopes of Fed Rate Hike Slowdown Meta Description: Stay updated on European shares gaining momentum as hopes rise for a slower pace of U.S. Federal Reserve interest rate hikes. Follow the latest market trends URL: https://financedigest.com/european-shares-kick-off-november-on-bright-notehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-01t083030z2lynxmpeia015ortroptp4europe-stocks-1736814938875-compressed.jpg) By Shreyashi Sanyal and Ankika Biswas (Reuters) -European shares gained on Tuesday, starting November on an upbeat note amid growing hopes that the U.S. Federal Reserve would slow down the pace of its interest [rate hikes](https://www.financedigest.com/ecbs-villeroy-rate-hike-signals-strong-confidence-in-european-banks.html "ECB’s Villeroy: rate hike signals strong confidence in European banks"). The pan-European STOXX 600 index rose 0.6% to [hit a near seven-week closing](https://www.financedigest.com/nestle-closes-french-buitoni-factory-hit-by-e-coli-outbreak.html "Nestle closes French Buitoni factory hit by E.coli outbreak") high, with miners and retailers leading the gains. [Investors expect](https://www.financedigest.com/wave-of-lawsuits-over-ftx-expected-but-investors-will-face-legal-hurdles.html "‘Wave’ of lawsuits over FTX expected, but investors will face legal hurdles") the U.S. central [bank to raise its interest rates](https://www.financedigest.com/bank-of-englands-mann-doubles-down-on-backing-for-rate-hikes.html "Bank of England’s Mann doubles down on backing for rate hikes") by 75 basis points on Wednesday, but hopes remain the central bank will deliver a smaller 50-bp increase in December. All eyes are on the Fed, so I am [expecting markets](https://www.financedigest.com/medical-device-technologies-market-expectations-and-growth-trends-highlighted-until-2028.html "Medical Device Technologies Market Expectations and Growth Trends Highlighted Until 2028") to cage up today … If the Fed surprises with a more dovish stance, I’m expecting a strong move higher in [risk assets](https://www.financedigest.com/analysis-watch-out-risk-assets-the-rout-in-bonds-is-coming-your-way.html "Analysis-Watch out risk assets, the rout in bonds is coming your way") and the dollar to move much lower,” said Giles Coghlan, chief market analyst at HYCM. A better-than-expected earnings season has recently helped pull the STOXX 600 higher, but worries remain about the euro zone slipping into a recession as the European Central [Bank promised more monetary policy tightening to combat record high inflation](https://www.financedigest.com/be-really-really-careful-on-inflation-bank-of-englands-haskel.html "Be ‘really, really careful’ on inflation – Bank of England’s Haskel"). Further, rumours based on an unverified note circulating on [social media that China was planning](https://www.financedigest.com/why-no-event-should-be-planned-without-a-social-media-strategy.html "Why No Event Should Be Planned Without a Social Media Strategy") a reopening from strict COVID curbs in March triggered a rush to luxury names, which have major exposure to China. [Luxury giants including LVMH](https://www.financedigest.com/analysis-lvmhs-caution-points-to-americans-waning-lust-for-luxury.html "Analysis-LVMH’s caution points to Americans’ waning lust for luxury"), Kering, Pernod Ricard and Hermes International advanced between 1.9% and 3.0%. Miners leapt 3.4%, while [oil & gas stocks added 1.7%, as prices of oil and industrial metals rose against a weak dollar](https://www.financedigest.com/oil-slumps-on-economic-data-stronger-u-s-dollar.html "Oil slumps on economic data, stronger U.S. dollar"). \[O/R\] \[MET/L\] There are social media reports on China [easing](https://www.financedigest.com/oil-hits-3-week-high-as-china-eases-covid-curbs.html "Oil hits 3-week high as China eases COVID curbs") its zero-COVID policy and look at how much relief it has brought to markets starved for some good news out of China,” Coghlan added. The [earnings season has also been largely supportive for markets](https://www.financedigest.com/tech-earnings-hit-pause-button-on-market-rally.html "Tech earnings hit pause button on market rally"). Out of the 163 STOXX 600 [companies that have reported](https://www.financedigest.com/global-body-urges-eu-to-make-company-life-simpler-by-aligning-climate-reporting.html "Global body urges EU to make company life simpler by aligning climate reporting") results so far, 58.3% exceeded analyst estimates, Refintiv data showed. In a typical quarter, 53% companies [beat estimates](https://www.financedigest.com/ibm-beats-first-quarter-profit-estimates-signals-demand-holding-up.html "IBM beats first-quarter profit estimates, signals demand holding up"). Prosus NV jumped 9.3% after the technology [investment firm denied a press report on a potential sale of its 28% stake in Chinese](https://www.financedigest.com/brexit-no-obstacle-as-chinese-overseas-property-investment-doubles.html "Brexit no obstacle as Chinese overseas property investment doubles") software and gaming giant Tencent. Italy’s Monte dei Paschi di Siena rose 4.9% as it said its up to 2.5 billion euro ($2.5 billion) [capital increase](https://www.financedigest.com/frances-ynsect-to-refocus-bug-business-after-capital-increase.html "France’s Ynsect to refocus bug business after capital increase") had been 93% covered so far. Dutch specialty chemicals maker DSM dropped 4.0% as it [lowered its 2022 profit outlook](https://www.financedigest.com/britains-next-sees-lower-clothing-inflation-shares-dip-on-cautious-outlook.html "Britain’s Next sees lower clothing inflation, shares dip on cautious outlook"). (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Subhranshu Sahu and David Evans) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---