Europe open: Inditex provides a boost as investors await Fed

16 September 2020

(Sharecast News) - European shares were again in positive territory at the start of trade on Wednesday with Zara owner Inditex boosting sentiment after reporting a return to profits.
The pan-European STOXX 600 index was slightly higher, up 0.36% with all major bourses in the green apart from London's FTSE 100.

Investors are holding fire ahead of the US Federal Reserve's policy announcement later.

Inditex said it saw a 74% jump in first-half online sales. Shares in the company rose by more than 5%, taking the stock to the top of the gainers board.

Shares in Swedish fashion retailer <strong>H&amp;M</strong> continued their positive run after reporting a stronger-than-expected recovery from the coronavirus lockdown.

German financial services firm <strong>Grenke</strong> saw its shares slump by almost 20% after the country's industry watchdog BaFin said on Tuesday it was looking into allegations of market manipulation following a critical report by a short-seller.

Grenke strongly rejected allegations made in the report by Fraser Perring of Viceroy Research.

"This report contains allegations which Grenke strongly rejects. A central accusation is that a substantial portion of the &euro;1.078bn in cash and cash equivalents reported in the 2020 half-year financial report does not exist. This is demonstrably false."

UK house builders were also out of favour after <strong>Redrow</strong> reported a slump in full year profits due to Covid-related impairments on its London operations. <strong>Bellway</strong> and Taylor <strong>Wimpey</strong> were lower on the news.