European Stocks Rise; Inflation Optimism Continues
European stock markets rose on Thursday, extending the previous session’s sharp gains after tame U.S. inflation kept the prospect of a Federal Reserve rate cut in check, although weak U.K. economic growth weighed on sentiment.
At 3:05 a.m. ET (08:05 GMT), Germany’s DAX was up 0.3%, France’s CAC 40 was up 0.7% and the U.K.’s FTSE 100 was up 0.6%.
Tame U.S. inflation-boosting optimism
A drop in U.S. core inflation and strong earnings from major U.S. banks helped Wall Street’s major indexes post their biggest daily percentage gains on Wednesday since Nov. 6 — the day after the U.S. presidential election.
The optimism spilled over into European markets, with the pan-European STOXX 600 posting its strongest daily performance in four months.
The gains continued on Thursday, although they were tempered by data showing that U.K. economic output rose for the first time in three months in November but less than expected, edging up 0.1% from October.
Also, German consumer prices rose 0.5% in December, slightly above the 0.4% forecast, and rebounded from a 0.2% decline seen in November.
Source: Investing
