European Stocks Close Higher On Some Positive Data, Rate Cut Hopes

(RTTNews) - European stocks closed on a positive note on Thursday with several major markets in the region rising to multi-month highs or new record highs, as some upbeat earnings updates, and encouraging European and U.S. economic data aided sentiment.

The mood remained fairly bullish following benign U.S. inflation data that helped raise hopes the Fed will announce a few interest rate cuts this year.

UK stocks gained, supported by data showing an expansion in the nation's GDP growth in the month of November, and gains in the mining sector following a rise in metal prices.

In France, shares of luxury goods companies moved higher French luxury goods group Richemont's upbeat sales data.

The pan European Stoxx 600 climbed 0.98%. The U.K.'s FTSE 100 gained 1.09%, Germany's DAX closed higher by 0.39% and France's CAC 40 jumped 2.14%. Switzerland's SMI surged 1.36%.

Among other markets in Europe, Belgium, Greece, Iceland, Netherlands, Portugal, Russia, Sweden and Turkiye closed higher.

Denmark, Ireland, Norway, Poland and Spain ended weak, while Austria and Finland settled flat.

In the UK market, RightMove, Spirax Group, Experian, Games Workshop Group, Hiscox, Beazley, 3i Group, Rolls-Royce Holding, Weir Group, Intertek Group, Antofagasta, Endeavour Mining, Fresnillo, Hikma Pharmaceuticals, Halma, BAE Systemes, IMI and Prudential gained 2 to 4.3%.

JD Sports Fashion ended nearly 6% down. Taylor Wimpey, Whitbread, EasyJet, Pershing Square Holdings, IAG, Pearson and Pearson lost 1.2 to 3%.

In the German market, Zalando climbed nearly 8%

Rheinmetall rallied 3.8%. Hannover Rueck, MTU Aero Engines, E.ON, Beiersdorf, Merck, Fresenius Medical Care and Symrise gained 1 to 2%.

Siemens Energy closed down 3.4%. Puma ended nearly 3% down, while Daimler Truck Holding and Mercedes-Benz both lost nearly 2%. HeidelbergCement lost about 1.6%.

In the French market, LVMH climbed about 9%. Kering gained 5.6% after agreeing to sell a majority stake in three luxury Paris properties to French private equity firm Ardian SAS, a deal that will net the struggling owner of the Gucci fashion label €837 million ($861 million).

Hermes International closed stronger by about 4.8% and Unibail Rodamco ended 3.3% up.

Renault moved up sharply after the automaker said sales volume grew by 1.3% in 2024 amid increased electric vehicle adoption.

TotalEnergies, L'Oreal, Sanofi, AXA, Capgemini, Airbus Group, Essilor, Pernod Ricard, Bouygues, ArcelorMittal, Air Liquide, Thales and Dassault Systemes gained 1 to 2.7%.

Teleperformance closed weak after a court approved a $5.5 million settlement tied to a 2022 controversy over the company's content moderation practices.

Stellantis, Carrefour, Teleperformance, Saint-Gobain and Publicis Groupe ended moderately lower.

On the economic front, final data from Destatis revealed Germany's consumer price index rose 2.6% in December, faster than the 2.2% increase in November. The reading was in line with the flash data published on January 7.

The December inflation reading was the highest rate since January 2024, when prices had risen 2.9%.

Consumer prices rose 0.5% in December, revised upwardly from 0.4%.

The data showed EU-harmonized inflation held steady at 2.8% in December as the rate for November was revised upwardly from 2.4%.

Data from the Office for National Statistics revealed that the UK economy expanded slightly in November after two consecutive contractions. The data said the nation's gross domestic product grew 0.1% on a monthly basis in November, following an unrevised fall of 0.1% in October. GDP was expected to grow 0.2%.

Data showed that the services sector was the largest contributor to the growth with output rising 0.1%. This follows a 0.1% fall in October.

The decline in industrial production softened to 0.4% from 0.6%. Within in this, manufacturing was down 0.3% on month compared to a 0.6% decline in October.

In November, GDP was estimated to be 1% higher than in November 2023. The actual growth was weaker than economists' forecast of 1.3%. In three months to November, real GDP registered no growth in the three months to November from previous three months.

Another report from the ONS showed that the visible trade gap was largely unchanged in November, coming in at GBP 19.31 billion compared to a GBP 19.33 billion shortfall in October.