European Shares Gain Ahead Of Inflation Data
European stocks advanced on Wednesday and bond yields rose, as investors awaited the release of November inflation data for the single-currency bloc for directional cues.
Ahead of the ECB’s interest-rate decision next month, ECB President Christine Lagarde said earlier this week that inflation in Europe hasn’t reached its peak yet and it risks turning out even higher than currently expected.
Traders also await a speech by U.S. Federal Reserve Chair Jerome Powell later in the day for clues over the size of future rate hikes.
Meanwhile, U.K. shop prices grew at the fastest pace since records began in 2005 largely due to rising food and energy prices, the British Retail Consortium said earlier today.
Shop price inflation accelerated to 7.4 percent in November from 6.6 percent in October. This was above the three-month average rate of 6.5 percent.
The pan European STOXX 600 was up half a percent at 439.64 after closing 0.1 percent lower on Tuesday.
The German DAX and France’s CAC 40 index both gained around 0.6 percent, while the U.K.’s FTSE 100 was up 0.7 percent.
SBB surged 6.2 percent. The Swedish real estate company agreed to sell a 49 percent stake in its education unit to Brookfield for 9.2 billion Swedish krone ($870.42 million).
Fashion retailer H&M Group rose about 1 percent after announcing it will cut 1,500 jobs in a cost saving drive.
British water and waste management company Pennon Group tumbled 5 percent after reporting a decline in pretax profit for the first half of fiscal 2023.
AstraZeneca gained half a percent after selling its manufacturing site in West Chester, Ohio to National Resilience, Inc.
Property investment and development firm SEGRO added half a percent after announcing the launch and pricing of 350 million pounds, 19-year senior unsecured bond issue.
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