Europe open: Stoxx up as traders eye US, UK inflation data
By Frank Prenesti
Date: Wednesday 15 Jan 2025
(Sharecast News) - European markets opened higher on Wednesday as investors waited on US inflation data and digested an unexpected fall in UK consumer prices.
The pan-regional Stoxx 600 index was up 0.32% at 509 points with most major bourses up. France's CAC 40 was the outlier, with shares down 0.7%.
Official data showed UK inflation fell to a lower-than-expected 2.5% in December, against forecasts of an unchanged 2.6% compared with the previous month. Britain's FTSE 100 rose 0.66% on the news.
"Whilst at 2.5% inflation is still stubbornly above the Bank of England's target, the fact headline CPI has come in below expectation and has even fallen a bit is cause for a degree of celebration," said AJ Bell analyst Danni Hewson.
"Markets have immediately seized on the numbers which will be the last inflation snapshot monetary policy committee members will get before they make their decision on whether to deliver an interest rate cut in February."
Global bond prices were slightly lower, but remained elevated as investors worry about the potential inflationary effects of a US-inspired trade war days ahead of Donald Trump taking office.
In equity news, housing stocks were in focus as UK home builder Vistry said it expected full-year underlying revenue to rise around 9% to £4.4bn after three consecutive profit warnings.
Reporting by Frank Prenesti for Sharecast.com
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