Europe midday: Shares hold gains on China optimism, Wall St

(Sharecast News) - European shares held gains at midday on Tuesday following positive sessions in the US and Asia. The pan-European Stoxx 600 index was up 0.56% in early trade. Britain's FTSE 100 outperformed with a 1.38% gain after a public holiday on Monday, while Asian markets rallied for a second day in a row, after China unveiled strategic measures to boost its stock markets, such as a cut in stamp duty and the loosening of margin loan rules.

"Commodity giants have jumped higher as metals prices have risen after Beijing introduced support for transport, property and infrastructure projects. For now this extra help has boosted sentiment but underlying questions still remain over the fragility of China's economy," said Susannah Streeter, head of money and markets at Hargreaves Lansdown,

In economic news, German consumer sentiment is expected to deteriorate next month amid high inflation, according to a survey released on Tuesday by market research group GfK.

GfK's forward-looking consumer sentiment index for September fell to -25.5 from -24.6 in August, coming in below consensus expectations for a reading of -24.3.

The survey showed that income expectations suffered another small setback in August, with the index down 6.4 points from July to -11.5. Meanwhile, the index for the propensity to buy declined 2.7 points to -17 points.

In equity news, NN Group surged after the Dutch insurer said its capital position had improved in the first six months of 2023.

Distribution specialist Bunzl also made gains after lifting its annual adjusted operating profit forecast and posting a rise in first-half profits.

Telecom Italia added 2.3% after Milan approved two decrees providing for the economy ministry to take a stake of up to 20% in the phone group's landline grid.

Britvic shares were up as Barclay upgraded its stance on the shares of Britvic and lifted its target price by 10%, saying the "stars are aligning" for the soft drinks maker.

Reporting by Frank Prenesti for Sharecast.com