EUROPEAN STOCKS END HIGHER AHEAD OF KEY POLICY MEETINGS

BRUSSELS/FRANKFURT/PARIS, Sept 18 (Bernama-dpa) -- European stocks closed higher on Tuesday amid optimism the US Federal Reserve (Fed) will announce an interest-rate cut on Wednesday, the German news agency (dpa) reported.

Investors also looked ahead to inflation data from the United Kingdom and the Bank of England's monetary policy announcement, due on Wednesday and Thursday, respectively.

The Fed is widely expected to lower interest rates, but the focus is on the size of the rate cut, and the central bank's accompanying statement. The UK consumer price inflation report may significantly influence market speculation for Bank of England's interest rate path for the last quarter of the year.

The pan European Stoxx 600 climbed 0.4 per cent, the UK's FTSE 100 gained 0.38 per cent, Germany's DAX ended up by 0.51 per cent, and France's CAC 40 settled higher by 0.51 per cent, while Switzerland's SMI ended with a gain of 0.31 per cent.

Among other markets in Europe, Finland, Greece, Iceland, Netherlands, Poland, Portugal, Russia, Spain, Sweden and Turkey closed on firm note. Austria and Belgium edged up marginally, while Denmark and Norway closed weak.

In the UK market, Kingfisher surged 11.25 per cent after raising the lower end of its fiscal 2025 profit guidance. EasyJet climbed by more than 6 per cent. JD Sports Fashion, IAG, Ashtead Group, Burberry Group, Mondi, Howden Joinery, Prudential, Marks & Spencer, Diageo, Croda International, Pershing Square Holdings, Whitbread, Frasers Group and Entain ended higher by 2 per cent to 3.5 per cent. 

BAE Systems ended down 4.7 per cent. British American Tobacco closed 2.36 per cent down, and Hikma Pharmaceuticals ended by nearly 2 per cent down. Pearson, Segro, Imperial Brands and GSK also ended notably lower.

In the German market, Zalando rallied more than 7 per cent. Siemens Energy gained about 4.3 per cent. Daimler Truck Holding, Infineon, Bayer, Deutsche Bank, Siemens, Continental and Sartorius advanced between 2 per cent and 3.5 per cent. BASF, HeidelbergCement, Brenntag, Volkswagen, Siemens Healthineers, Symrise, Fresenius and Mercedes-Benz climbed by 1 per cent to 2 per cent. Rheinmetall lost nearly 6.5 per cent. MTU Aero Engines closed lower by about 2.5 per cent, while Hannover Rueck and Munich RE, both closed down by about 1.6 per cent.

In the French market, STMicroElectronics, Saint-Gobain, Edenred and ArcelorMittal gained by 2 per cent to 3 per cent. BNP Paribas, Kering, Renault, Hermes International, Societe Generale, Schneider Electric, Capgemini, Legrand, Teleperformane, Bouygues and Accor closed higher by 1 per cent to 1.8 per cent. Thales ended down 3.8 per cent. Essilor closed lower by about 1.25 per cent, while Danone ended nearly 1 per cent down.

In Switzerland, shares of chocolate maker Barry Callebaut rallied sharply after Barclays raised its rating on the stock to "overweight" from "underweight".

In economic news, German investor confidence declined sharply again in September as hopes of swift improvement in economic situation fade, survey results from the think tank ZEW showed. The ZEW Indicator of Economic Sentiment fell to 3.6 from 19.2 in August. The score was the lowest since October 2023 and also well below forecast of 17.2. 

-- BERNAMA-dpa