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* UK airlines shine
* Europe Inc Q2 earnings growth estimates revised upwards
* Investors await Fed decision (adds commentary, details, chart; updates prices throughout)
By Sruthi Shankar and Shreyashi Sanyal
July 28 (Reuters) – European equities rose on Wednesday as encouraging results from UK bank Barclays and luxury group Kering helped investors overcome concerns over China’s regulatory crackdown that kept markets on their toes this week.
The pan-European STOXX 600 index rose 0.7% after two sessions of decline.
Barclays jumped 2.0% on announcing resumption of shareholder payments after beating first-half profit expectations, while German lender Deutsche Bank edged up after posting better-than-expected quarterly profit.
The tech sector was supported by a 3.8% rise in Capgemini after the French IT consulting and services provider raised its outlook for 2021.
French luxury group Kering rose 3.6% as second-quarter sales nearly doubled, with its flagship fashion brand Gucci accelerating sharply.
Analysts expect companies listed on the STOXX 600 to post profit growth of 120.8% in the second quarter from 115.2% expected last week, according to an estimate from Refinitiv IBES.
“The underlying fundamentals of the market remain as they were. We have good companies producing better profits,” said David Miller, chief investment officer at Quilter Cheviot Investment Management.
“Ratings are certainly higher than they used to be, but they are supported by earnings growth, and central banks continue to support them.”
European stock markets topped Wall Street’s benchmark S&P 500 on Wednesday ahead of the US Federal Reserve’s policy move later in the day, with investors awaiting clues as to when to cut as policymakers face an increase in inflation in the world’s largest economy.
“This is unlikely to be a particularly exciting FOMC meeting, but there may be clues regarding the process of reducing asset purchases,” said Chris Beauchamp, chief market analyst at IG.
Wizz Air jumped 8.0% after the Hungarian airline predicted ramp-up capacity between 90% and 100% of pre-pandemic levels in July and August.
Other airlines, including easyJet and British Airways operator IAG, have also taken advantage of Britain’s decision to exempt double-vaccinated visitors from the European Union and the United States from quarantine.
When entering into agreements, the Adecco group fell 7.9% when it said it had agreed to buy AKKA Technologies as part of an agreement worth 2 billion euros (2.4 billion euros). dollars), the biggest deal in the Swiss recruiting firm’s 25-year history.
Telecom Italia edged up 0.3% saying it could seek investors for its wholesale cloud and submarine cable business as it seeks to extract value from its assets.
(Reporting by Sruthi Shankar and Shreyashi Sanyal in Bangalore; Editing by Sriraj Kalluvila and Barbara Lewis)