Europe close: US inflation data buoys stocks
By Alexander Bueso
Date: Tuesday 15 Nov 2022
(Sharecast News) - European stocks edged up as another better-than-expected reading on US inflation offset weak readings on a barrage of Chinese economic data released overnight.
The pan-European Stoxx 600 added 0.37% to 433.44 with the Dax up by 0.46% to 14,378.51 alongside and the Cac-40 adding 0.49% to 6,641.66.
Investor sentiment was knocked lower earlier in the session by data showing Chinese retail sales and factory output were dragged down by Covid-19 restrictions in October.
However, data released during the afternoon revealed a slowdown in the annual rate of increase in US producer prices to 8.0% in October (consensus: 8.4%).
On a related note, German investor sentiment improved more than expected in November, according to a survey released on Tuesday morning by the ZEW Center for European Economic Research in Mannheim.
The headline ZEW economic sentiment index for Germany rose to -36.7 from -59.2 in October, coming in above consensus expectations for a reading of -50.
ZEW President, Achim Wambach, attributed the improvement hopes that inflation would soon fall.
"In this case, policymakers would not have to hit the brakes on monetary policy as hard and/or for as long as feared," he said.
In equity news, shares in Vodafone fell as the telecoms giant said it expected annual earnings to be at the lower end of guidance.
BAE Systems gained as it forecast more growth in 2023 on elevated geopolitical tensions.
Danish medical equipment maker Ambu fell 15% as fourth quarter results and a cautious outlook disappointed investors.
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