European shares climb as robust US data soothes recession jitters By Reuters

By Amruta Khandekar and Matteo Allievi

(Reuters) -European shares climbed on Wednesday after robust U.S. data soothed concerns about a steep economic slowdown, while investors awaited commentary from central bankers at a forum expected later in the day for further policy direction.

The pan-European index was up 0.6% by 0826 GMT, tracking overnight gains in Wall Street.

A raft of data on Tuesday showing higher new orders for key U.S.-manufactured capital goods and consumer confidence lifted sentiment, which was bogged down in recent days by concerns that the global economy could suffer a sharp slowdown from further monetary tightening.

Investors are keenly watching a panel discussion of central bankers in Sintra, including European Central Bank President Christine Lagarde, Federal Reserve Chair Jerome Powell, Bank of Japan Governor Kazuo Ueda and Bank of England Governor Andrew Bailey.

Hawkish comments from Lagarde fanned concerns that global interest rates could stay elevated for longer than expected.

“Hawkish monetary policies are now very well-priced in (and) it’s time to see the pace and the size of those rate hikes that are going to be announced,” said Pierre Veyret, technical analyst at ActivTrades.

“If Jerome Powell and Andrew Bailey manage to change their tone or provide more dovish clues, then the the real surprise will come.”

Almost all major European sub-sectors were in trading in black.

Shares of Sage Group (LON:) Plc gained 4.1% to a 23-year high after J.P. Morgan upgraded its rating on the stock to “overweight” from “neutral”.

Shares of chip equipment maker ASML Holding (NASDAQ:) rose 1.3% while Nordic Semiconductor jumped 2.7% in early trade, making technology among the top European sectoral gainers.

Semiconductor shares were in focus after a report stated the U.S. is considering new restrictions on exports of artificial intelligence chips to China.

Also boosting the STOXX 600, Roche Holding (OTC:) gained 1.6% after the U.S. health regulator declined to approve Regeneron (NASDAQ:)’s Eylea drug.

German consumer sentiment is set to fall in July due to a decline in economic and income expectations, a GfK institute survey showed. Investors are also watching out for consumer prices data from Italy due later in the day.

French supermarket chain Carrefour (EPA:) gained 3.4% after Morgan Stanley (NYSE:) initiated coverage with an “overweight” rating.

Shares in Siemens Energy rose 4.6% after a steep selloff last week following the disclosure of problems at its wind turbine division.