UKX FTSE 100 Index

By Barbara Kollmeyer, MarketWatch , Anneken Tappe

Materials and chemicals stocks lead gainers

Europe's main stock gauge ended Wednesday's session higher, booking its fourth straight win thanks to gains in the materials and chemicals sectors.

Danske Bank AS stood out among the losers as its top executive stepped down over a money-laundering scandal.

What are markets doing?

The Stoxx Europe 600 added 0.3% to close at 379.98, in a week that has delivered a 0.6% rise so far. Shares squeaked by with a 0.1% gain on Tuesday (http://www.marketwatch.com/story/european-stocks-rise-led-by-surge-for-biotech-galapagos-2018-09-12).

Germany's DAX 30 finished 0.5% higher at 12,219.02, while France's CAC 40 added 0.6% to end at 5,393.74. The U.K.'s FTSE 100 closed 0.4% higher at 7,330.11.

The euro was little changed at $1.1686 against the dollar. The pound bought $1.3161, compared with $1.3147.

What is driving the market?

The pound shot up earlier Wednesday, reaching above $1.32 after U.K. inflation jumped to a surprise six-month high of 2.7%. The news boosted banks on the view that the Bank of England may be pressure into more interest rate increases after an August hike (http://www.marketwatch.com/story/bank-of-england-raises-key-lending-rate-to-075-2018-08-02). But the currency eased back (http://www.marketwatch.com/story/uks-may-reported-to-reject-irish-border-proposal-british-pound-slumps-2018-09-19-7912642) after a report (https://www.thetimes.co.uk/edition/news/theresa-may-to-reject-improved-eu-offer-on-irish-border-3mwvjzg2r)that U.K. Prime Minister Theresa May would (http://www.marketwatch.com/story/uks-may-reported-to-reject-irish-border-proposal-british-pound-slumps-2018-09-19-7912642)reject the proposal from the EU on the Irish border.

Read:Why another Brexit summit is unlikely to put investors at ease (http://www.marketwatch.com/story/why-another-brexit-summit-is-unlikely-to-put-investors-at-ease-2018-09-18)

Stocks in Asia climbed. U.S. stocks traded mostly higher.

What are analysts saying?

While U.K. banks were getting a lift for now from revived rate-hike hopes, "ambivalent implications for growth and other consumer-led activity," could eventually weigh on those stocks, said Ken Odeluga, market analyst at City Index, in a note.

"For now, bank shares are among sectors participating with gains in Continental markets, though STOXX's mining-related basic resource index is again at the front, auto and parts shares aren't far below. Further delay before Beijing responds to Washington's invitation could be the point on which global investor consensus could begin to show cracks, even as the White House weighs an ex-ante to counter-retaliate," he said.

Stock movers

Among the top decliners, Danske Bank (DANSKE.KO) finished 3.4% lower after CEO Thomas Borgen announced his resignation (http://www.marketwatch.com/story/danske-bank-finds-200b-in-suspect-transactions-2018-09-19) amid the outcome of an internal probe that money laundering was involved in a "large portion" of more than $200 billion in transactions from a branch in Estonia.

Adecco Group AG (ADEN.EB) slumped over 6% after the temp staffing firm reported markedly slower growth (http://www.marketwatch.com/story/adecco-points-to-europe-slowdown-in-3q-performance-2018-09-19) in the third quarter for continental Europe.

On the upside, a number of mining stocks were tracking higher, with Anglo American PLC (AAL.LN) closing up 5.1%, Antofogasta PLC (ANTO.LN) up 5.9% and Rio Tinto PLC (RIO.LN) (RIO.LN) gaining 3%.

In London, HSBC Holdings PLC (HSBA.LN) closed up 1.8%, Royal Bank of Scotland Group PLC (RBS.LN) (RBS.LN) jumped to end 2.7% higher and Barclays PLC (BCS) (BCS) closed 2.2% higher.

(END) Dow Jones Newswires

September 19, 2018 12:17 ET (16:17 GMT)

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