Europe close: Stocks edge higher as euro area inflation ebbs further
By Alexander Bueso
Date: Wednesday 03 Apr 2024
(Sharecast News) - European stocks edged higher on Wednesday, as investors assessed how a surprise drop in inflation might affect the short-term outlook for interest rates.
Stock market indices across Frankfurt, Paris, Milan and Madrid all put in modest gains.
The Stoxx 600 index edged up just 0.29% to 510.02, after a decline during the previous session.
Nonetheless, the pan-European benchmark continues to trade near its record closing high of 512.67 reached last week.
Analysts at Barclays on Wednesday raised their year-end projections for the Stoxx 600 to 540, from 510 previously.
Data released early on Wednesday showed that inflation in the Eurozone unexpectedly slowed in March, with the core rate dropping to its lowest in more than two years, as price pressures in the single-currency region continue to ease.
The year-on-year change in the eurozone's harmonised consumer price index fell to 2.4% last month, from 2.6% in February, according to Eurostat, surprising economists who had pencilled in no change. This was the same rate recorded in November 2023, which was the lowest level seen since July 2021.
The core rate - which excludes volatile items like food and energy - also slowed, to 2.9% from 3.1%, coming in under expectations of 3.0% and the lowest reading since February 2022.
Rabobank said the conditions for an interest-rate cut by the ECB in June were "ripening".
London-listed engineer Renishaw slumped 3% after Germany's Siemens confirmed it was not planning to make an offer for the company.
Zurich-based reinsurer Swiss Re was in the red by 4% as markets gave a muted reaction to news that the head of its Corporate Solutions unit will succeed long-standing chief executive Christian Mumenthaler.
Swiss solar panel manufacturing Meyer Burger plummeted over 25% after raising CHF207m via a rights issue.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN