European Stocks Close Higher On Soft UK, Eurozone Inflation Data

(RTTNews) - European stocks closed broadly higher on Wednesday with the UK market outperforming other major markets after data showed UK headline inflation fell to a 15-month low.

Soft inflation data from the UK and Europe, and rising expectations that the Federal Reserve's rate hiking cycle will end soon helped underpin sentiment.

The pan European Stoxx 600 advanced 0.26%. The U.K.'s FTSE 100 climbed 1.8%. Germany's DAX ended 0.1% down and France's CAC 40 edged up 0.11%, while Switzerland's SMI gained 0.15%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Greece, Iceland, Ireland, Norway, Poland, Portugal and Turkiye closed higher. Finland ended modestly higher.

Russia and Sweden closed weak, while Denmark, Netherlands and Spain ended flat.

Data from the Office for National Statistics showing the nation's annual headline inflation falling to a 15-month low to 7.9% in June, down from 8.7% in May. Meanwhile, core inflation came in at 6.9%.

The drop in inflation has strengthened the case for a quarter point rate hike from the Bank of England rather than an aggressive half a percentage point increase at the August meeting.

Meanwhile, final data from Eurostat said the consumer price inflation rate in the Euro Area was confirmed at 5.5% in June 2023, the lowest level since January 2022. However, the core rate, which excludes volatile items such as food and energy, picked up to 5.5 percent, above a preliminary estimate of 5.4%.

Data from European Automobile Manufacturers' Association, or ACEA, showed passenger car sales logged a double-digit growth of 17.8% in June.

In the UK market, Hargreaves Lansdown, Persimmon, Land Securities, Segro and Barratt Developments surged 7 to 9%.

Taylor Wimpey climbed 6.8%. Unite Group, Berkeley Group Holdings, RightMove, Admiral Group, Scottish Mortgage, Legal & General, M&G, St. James's Place, Schrodders, Natwest Group, United Utilities, Airtel Africa, Burberry Group and Haleon gained 3.5 to 5.3%.

WPP, Antofagasta, Weir Group, Ocado Group and Prudential lost 1 to 1.6%.

In the German market, Vonovia rallied nearly 7%. Sartorius, Puma, Zalando and Deutsche Bank gained 1.5 to 2%. Siemens Healthineers, Continental, Symrise and BASF also ended notably higher.

Covestro drifted down nearly 3%. Daimler, Munich RE, Infineon and Siemens lost 1 to 1.4%.

In Paris, Kering gained nearly 7.5%. Eurofins Scientific climbed 3.2% and WorldLine gained 2.1%. Dassault Systemes, TotalEnergies, Michelin, Unibail Rodamco, Bouygues, Orange, Carrefour, Renault and Teleperformance ended higher by 1 to 1.6%.

Publicis Groupe ended 2.8% down. Schneider Electric, Legrand, ArcelorMittal and LVMH lost 1 to 2%.