European Stocks Close Higher Despite Weak Economic Data

(RTTNews) - European markets closed mostly higher on Monday with investors looking to pick up stocks despite weak data on inflation and GDP.

The mood was a bit cautious at times with markets looking ahead to the Federal Reserve's monetary policy announcement on Wednesday. The U.S. central bank, which is set to meet on Tuesday and Wednesday, is widely expected to raise interest rate by another 75 basis points - its fourth straight hike - to fight rising inflation.

The Bank of England, which is scheduled to announce its policy on Thursday, is also likely to raise rates by 75 basis points.

The pan European Stoxx 600 climbed 0.35%. The U.K.'s FTSE 100 gained 0.66%, Germany's DAX edged up 0.08%, and France's CAC 40 ended lower by 0.1%. Switzerland's SMI surged 0.52%.

Among other markets in Europe, Austria, Belgium, Denmark, Greece, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Spain and Turkiye closed higher.

Sweden ended weak, while Czech Republic, Finland and Russia closed flat.

In the UK market, IAG climbed about 5.5%. Centrica and Natwest Group gained 4.75% and 4.4%, respectively.

Flutter Entertainment, Coca-Cola, BT Group, Pershing Square Holdings, Sainsbury (J), Vodafone Group, Lloyds Banking Group, Reckitt Benckiser, Kingfisher, Rolls-Royce Holdings, BP and Pruedential gained 1.5 to 3%.

Intertek Group dropped 2.8%. Croda International, Mondi, RS Group and Halma lost 1 to 1.6%.

In Paris, Faurecia, Unibail Rodamco, Vivendi, Accor, Sanofi, Societe Generale, Pernod Ricard, L'Oreal, Publicis Groupe, ArcelorMittal, Danone, Valeo and Atos gained 1 to 2.6%.

Air France-KLM drifted lower by nearly 4%. Capgemini ended down by about 3%. Schneider Electric, Dassault Systemes, Sodexo and LVMH lost 1.4 to 2%.

In the German market, Fresenius Medical Care climbed more than 6% despite the company cutting its FY22 profit outlook. The company said it expects 2022 net income attributable to shareholders to decline in the high teens to mid-twenties percentage range.

Fresenius gained about 5.5%. E.ON, Deutsche Wohnen, Continental, Vonovia, Bayer and Linde surged 1 to 2.3%.

Zalando dropped by about 4%. Puma, Infineon Technologies, Merck, Deutsche Bank and MTU Aero Engines shed 1.25 to 2.5%.

Flash data from Eurostat showed Eurozone inflation accelerated further to a new record high in October, rising more than expected to 10.7% in the month from 9.9% in the previous month. The rate was forecast to rise to 10.2%.

Core inflation which excludes energy, food, alcohol and tobacco, advanced to 5% from 4.8% in the prior month. The rate was forecast to remain unchanged at 4.8%.

Month-on-month, the harmonized index of consumer prices gained 1.5% in October.

Another data from Eurostat showed the euro area economy expanded at a slower pace in the third quarter, with the gross domestic product growing 0.2% sequentially, slower than the 0.8% expansion seen in the second quarter. Economists had forecast the quarterly rate to improve to 1%.

On a yearly basis, economic growth slowed more than halved to 2.1%, as expected, from 4.3% a quarter ago.

A report from Destatis showed Germany's retail sales grew unexpectedly in September, increasing by real 0.9% on a monthly basis, reversing the revised 1.4% decline in August. Economists had forecast a 0.3% fall.

Switzerland's retail sales increased for the fourth successive month in September, though at a slower-than-expected rate, data from the Federal Statistical Office showed.

Retail sales adjusted for sales days and holidays climbed a working-day adjusted 3.2% year-on-year in September, faster than the revised 2.1% increase in August. That was just below the 3.3% rise expected by economists.