European stocks traded higher on Tuesday as investors reacted to strong economic data from Germany and China’s surprise rate cut.
The upside, however, remained capped by caution ahead of U.S. CPI data due later in the day and the Fed’s interest-rate decision scheduled for Wednesday.
German consumer price inflation climbed 6.1 percent annually in May, slower than the 7.2 percent rise in April, Destatis reported. That was in line with the flash data published on May 31.
Further, this was the weakest inflation since March 2022, when prices had risen 5.9 percent.
Similarly, EU-harmonized inflation slowed to 6.3 percent from 7.6 percent in April, as estimated.
The German ZEW headline number showed that the economic sentiment index unexpectedly improved to -8.5 from -10.7 seen in May. Analysts had expected a score of -13.0.
The pan European STOXX 600 was up 0.2 percent at 461.66 after closing 0.2 percent higher on Monday.
The German DAX rose 0.3 percent, France’s CAC 40 gained 0.4 percent and the U.K.’s FTSE 100 was up 0.2 percent.
ProSiebenSat.1 rose over 1 percent. The German private broadcaster announced that, Wolfgang Link, former Chief Entertainment Officer and CEO of Seven One Entertainment Group, has decided to leave the Group as of July 15, 2023.
Durr Group shares jumped 4.3 percent. The mechanical and plant engineering firm said that it has signed a deal to acquire BBS Automation Group.
China-exposed luxury giant LVMH and Hermes International both rallied around 1.3 percent after the People’s Bank of China (PBOC) cut its seven-day reverse repo rate by 10 basis points in a bid to restore market confidence and prop up slowing economic growth.
Miners Anglo American, Antofagasta and Glencore jumped 2-4 percent in London, tracking higher base metal prices.
Tatton Asset Management rallied 2.8 percent after reporting a rise in FY23 pre-tax profit and assets.
British Gas owner Centrica fell more than 1 percent. After posting strong performance for the first five months of the year, the energy company forecast 2023 earnings at the top end of analysts’ views.
Swedish industrial technology group Hexagon soared 4.5 percent after it announced a collaboration with Nvidia.
Source: Read Full Article