European Stocks Gain on Ukraine Deal Hopes; Growth Fears Linger
European stocks advanced Wednesday after four days of declines as Ukraine accepted a ceasefire proposal brokered by the US, although worries about American economic growth lingered.
The Stoxx Europe 600 Index was up 0.8% by the close, although it pared gains of as much as 1.5% that were sparked by a report showing US consumer prices rose in February at the slowest pace in four months.
Investors may be more worried about the prospect of an economic slowdown than they are relieved by the cooling price pressures, said Richard Flynn, managing director at Charles Schwab UK.
“Inflation concerns have been front and center,” he said. “However, growth has become the bigger worry for market watchers, so it may be this that prompts the next change in rates when the time come.”
Retailers fell to the lowest in a year as Zara owner Inditex SA slumped 8% after reporting slowing sales.
Roche Holding AG and Zealand Pharma A/S rose after the drugmakers teamed up to collaborate on development and commercialization of Zealand’s most promising weight-loss drug. Puma SE plummeted 20% as it forecast another year of slow growth.
Source : Bloomberg
