European shares hit two-week high on healthcare boost; Fed rate verdict eyed

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, Oct 31, 2023. REUTERS/Staff

European shares rose to a near two-week high on Wednesday, boosted by healthcare stocks, with investors gearing up for the U.S. Federal Reserve’s to hold interest rates, as is widely expected, later in the day.

The pan-European STOXX 600 was up 0.1 percent by 0825 GMT, set for its third straight day of gains.

Fed policymakers have telegraphed no change to the current 5.25 percent-5.50 percent target range for short-term interest rates at their two-day meet. The decision is due at 1800 GMT (2 p.m. ET).

Leading sectoral gains were healthcare stocks, up over 1 percent, with GSK gaining 1.8 percent after raising its full-year profit and sales forecasts for a second time.

Denmark’s Orsted slumped 20.1 percent to the bottom of the STOXX 600 following a third-quarter profit miss and massive impairment charges.

Swedish builder Skanska dropped 12.3 percent after reporting third-quarter operating earnings well below expectations as weak property markets took a toll.