European shares rebound after inflation eases in Britain

Archive…European Stocks

European stocks recovered their gains on Wednesday after weaker-than-expected inflation data in Britain supported hopes that the Bank of England will cut interest rates soon.

Stock movements

The European STOXX 600 index closed 0.5 percent higher after falling 1.0 percent in the previous session.

Britain's core index rose 0.8 percent after British consumer price inflation stabilized in January.

Stock markets around the world steadied after a sell-off following inflation data in the US, which came in higher than expected on Tuesday, leading to a decline in expectations that the US Federal Reserve will cut interest rates.

European Central Bank Deputy Governor Luis de Guintos said on Wednesday that the bank needed some time and more economic data before making a decision to cut interest rates.

The data shows that economic growth in the euro zone stabilized in the last quarter of 2023 compared to the previous quarter.

An index of aviation and defense stocks rose 1.2 percent, an all-time high.

Technology shares rose 1.0 percent after sharp losses in the previous session, while mining stocks fell 0.5 percent to their lowest level in nearly four months.

Delivery Hero shares rose 19.6 percent in its strongest session since December 2019, as the German food delivery services group expected cash flows from regular operations to settle bonds and debt in the coming years.

Coca-Cola shares rose 8.0 percent as the Switzerland-based company expected its annual profit to grow in 2023 after reporting unprecedented profits.

Capgemini shares rose 6.9 percent after the French IT consultancy reported better-than-expected quarterly earnings.

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ThyssenKrupp shares fell 10.5 percent after the company cut forecasts for annual sales and net profit, blaming falling demand and prices in the raw materials and steel sectors.

Heineken shares fell 6.4 percent as the Dutch beer giant expected operating profit to grow in the single digits in 2024 due to geopolitical fluctuations and economic conditions. The food and beverage index fell 0.5 percent, weighed down by Heineken shares.

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