European Stocks Close Higher Again

(RTTNews) - European stocks closed higher on Wednesday despite concerns about fresh tariffs by U.S., and data showing a bigger than expected increase in U.S. consumer price inflation raising prospects of the Federal Reserve holding interest rates higher for longer.

Investors mostly tracked earnings updates and other corporate news for direction.

Data from the Labor Department report said the consumer price index advanced by 0.5% in January after climbing by 0.4% in December. Economists had expected consumer prices to rise by 0.3%.

The report also said the annual rate of consumer price growth accelerated to 3% in January from 2.9% in December, while economists had expected the pace of growth to remain unchanged.

The annual rate of core consumer price growth also ticked up to 3.3% in January from 3.2% in December. Economists had expected the pace of growth to slow to 3.1%.

On the tariffs front, Trump said on Monday that he would introduce 25% tariffs on all steel and aluminium imports from March 12, a move which received condemnation from Mexico, Canada and the European Union.

The pan European Stoxx 600 edged up 0.11%. The U.K.'s FTSE 100 climbed 0.34%, Germany's DAX closed higher by 0.5% and France's CAC 40 ended 0.17% up, while Switzerland's SMI settled 0.16% up.

Among other markets in Europe, Austria, Belgium, Finland, Greece, Ireland, Netherlands, Poland, Russia, Spain and Sweden closed higher.

Denmark, Iceland, Norway, Portugal and Turkiye ended weak.

In the UK market, Prudential climbed about 5.8%. Entain closed 5.5% up. Barratt Redrow closed stronger by 5.3% after the company launched a £50 million share buyback and said it expects annual earnings towards the upper end of market view.

Barratt Redrow reported profit before tax of 117.2 million pounds for the first half, 23.1% higher than 95.2 million pounds in the comparable period last year. Adjusted profit was 121 million pounds or 9.1p per share versus 114.8p per share or 11.6p per share a year ago.

Additionally, the company plans to buy back its ordinary shares of 10 pence each, for up to 50 million pounds starting from February 12, 2025, through June 30, 2025.

Croda International, Kingfisher, EasyJet, Schrodders, Lloyds Banking Group, JD Sports Fashion, AstraZeneca, Melrose Industries, Intertek Group, Informa, BP, Rentokil Initial, Vodafone Group, Compass Group, Howden Joinery, British Land and Intercontinental Hotels Group gained 1 to 2.7%.

Glencore ended nearly 2.5% down. Centrica drifted down 2.1%, while St. James's Place, Games Workshop, Diageo, United Utilities, Ashtead Group, Taylor Wimpey, National Grid, Persimmon, Sainsbury (J) and Marks & Spencer lost 1 to 2%.

In the German market, Siemens Energy climbed about 5%. BASF rallied 3% and Puma ended nearly 2.5% up. Zalando, Adidas, Mercedes-Benz, Deutsche Boerse, Symrise, Bayer, Brenntag, Infineon, Allianz, Deutsche Telecom, Volkswagen and MTU Aero Engines closed with sharp to moderate gains.

Vonovia lost about 3.4%. RWE and Daimler Truck Holding both ended down by a little over 2%. Siemens Healthineers, Siemens and Beiersdorf lost 1 to 1.25%.

In the French market, Kering climbed more than 7% despite a 12% drop in revenue in the fourth quarter of 2024.

Edenred gained about 3.1% and Teleperformance closed 2.8% up. Societe Generale, Renault, Capgemini, Airbus Group, Orange, BNP Paribas, Danone and Sanofi gained 1 to 2%.

L'Oreal, Schneider Electric, Veolia and Engie lost 1.2 - 2.1%.