European stocks traded mildly higher on Wednesday following a rally in markets in the U.S. and Asia as markets try to continue their post-Brexit recovery amid hopes of further monetary policy easing. The pan-European STOXX 600 was up 0.11 percent. Asia markets advanced on Wednesday, extending a global rally that pushed major U.S. indexes to records amid expectations of further easing from Japan and the resolution of some concerns over the U.K's. political scene. Theresa May, who is currently home secretary, is set to be installed as prime minister by Wednesday evening, replacing David Cameron who resigned after the Brexit vote last month. It remains unclear when the May will trigger Article 50, which initiates the withdrawal process from the EU; she has signaled that it could be later this year or even in 2017. Investors are also anticipating further monetary policy easing from global central banks, including a potential interest rate cut from the Bank of England, and a delayed rate hike from the U.S. Federal Reserve. Easier monetary policy is expected to support markets. Burberry warns on weak outlook A number of U.K. firms released trading statements on Wednesday. British pub group JD Wetherspoons said like-for-like sales for the 11 weeks to 10 July 2016 increased by 4.0 percent and said it anticipates "a modestly improved outcome for this financial year", sending shares higher. Luxury fashion brand Burberry reported retail revenues that were flat in the three months to June 30 and warned wholesale revenue would be weaker than previously expected, but shares rallied. British housebuilder Barratt Developments saw shares lower despite saying pretax profit for the year to the end of June rose 20 percent and said it remains confident in the positive fundamentals of both the housing sector and its business. RAIR Steinhoff buys Poundland Elsewhere, France's Airbus is slashing production of its A380 superjumbo, which has struggled to win new customers amid a lacklustre market for widebody aircraft. Shares were trading lower. And French retailer Casino was trading lower after it said second-quarter sales were up 3.8 percent like-for-like helped by its Brazil business. Train maker Alstom reported sales in the quarter ending June 30 up 9 percent year-on-year but said orders in the same period dropped 55 percent, sending shares in the French firm higher. In other business news, Steinhoff agreed a £597 million ($794 million) takeover of U.K. budget retailer Poundland. Meanwhile, shares of Nokia rallied after it expanded its patent licensing deal with South Korea's Samsung, which will lead to a boost in sales for the Finnish telecoms equipment maker. Miners rally Metal prices rallied on Wednesday with London copper flying through the $5,000 mark for the first time since late April amid renewed risk appetite among investors, linked to the prospect of easier monetary policy. The positive sentiment on metals pushed mining shares higher with the likes of Antofagasta, Arcelormittal and Anglo American rallying. But elsewhere in the commodities space, the oil price was under pressure. A number of oil stocks were in the red including BP and Statoil. Italian banks in focus A number of Italian banks were trading higher on Wednesday after some positive news for the sector. Italy's finance minister Pier Carlo Padoan said the Italian banking sector was "solid" and the recapitlization needs of the country's lenders were overstated. Investors are concerned about the large number of bad loans held by Italian banks which could pose a threat to the euro zone's other lenders. Unicredit shares rallied after it sold minority stakes in two of its units, raising 1 billion euros ($1.1 billion). And shares of Banca Monte dei Paschi di Siena were also higher after reports that JP Morgan may be chosen to manage the sale of around 10 billion euros of non-performing loans. Source: CNBC
