Europe midday: Shares rally ahead of US CPI; Carl Zeiss falls sharply
By Frank Prenesti
Date: Wednesday 11 Dec 2024
(Sharecast News) - European shares rallied to be in positive territory after a weak start on Wednesday as traders eyed corporate updates and also turned their attention to US inflation data later in the day.
The pan-regional Stoxx 600 index was up 0.07% at 518.86, with most bourses following suit. Spain's Ibex was down 1.14%.
''Investors look set to show wariness ahead of a key inflation report due out in the US, while they await more detail about support for China's struggling economy," said Hargreaves Lansdown analyst Susannah Streeter.
"With the (Chinese) Politburo having announced a looser monetary stance will be adopted next year, investors are holding out for more fiscal support, bigger spending and lower borrowing."
"Interest rate speculation in the US is set to heighten when a CPI snapshot of inflation is released later, with the signs are that prices have become more stubborn."
"If as expected, the headline rate creeps up a little, by 0.1% on the month, it is likely to increase bets of a rate cut next week. Markets are already pricing in a near 85% probability that the Fed will plump for another 0.25% reduction."
In equity news, Zara owner Inditex fell 5% after the fast-fashion retailer missed estimates on third-quarter sales.
German energy group Siemens Energy was lower after US rival GE Vernova's chief executive said he was cautious about the outlook for the struggling wind sector.
Adidas declined after authorities raided its headquarters in Germany as part of a years-long tax investigation.
Optics giant Carl Zeiss slumped on poorly received annual results.
About You soared 65% after German online retailer Zalando said it would acquire the fashion group in a €1.1bn deal. Zalando shares were down 5% on the news.
Reporting by Frank Prenesti for Sharecast.com
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