European Stocks Rebound From Recent Losses, Close Notably Higher

(RTTNews) - European stocks closed higher on Wednesday, recovering from recent losses, as Wednesday's strong economic data from the U.S. outweighed concerns about interest rates and a batch of somewhat weak economic data from the euro area.

Investors closely followed the speeches of central bank officials at the European Central Bank forum in Sintra, Portugal.

The pan European Stoxx 600 climbed 0.7%. The U.K.'s FTSE 100 gained 0.52%, Germany's DAX ended 0.64% up, and France's CAC 40 surged 0.98%, while Switzerland's SMI gained 0.37%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden and Turkiye all closed higher. Iceland ended flat.

In the UK market, Sage Group rallied 5.1% thanks to a rating upgrade. Scottish Mortgage surged nearly 4%. Pershing Square Holdings, Ashtead Group, CRH, Sainsbury (J), ABRDN, Experian, Segro, Frasers Group, Melrose Industries and Croda International gained 2 to 3%.

Ocado Group ended more than 5% down. Admiral Group lost 3.3%. Anglo American Plc, Reckitt Benckiser, Antofagasta and Glencore ended lower by 1.4 to 2%.

In the German market, Siemens Energy surged nearly 7%. Sartorius and Fresenius Medical Care gained about 3.8% and 3.6%, respectively.

Merck, Fresenius, BASF, SAP, Daimler Truck Holding, Vonovia, Deutsche Post, BMW, Infineon, Porsche, Siemens Healthineers and Symrise gained 1 to 2.5%.

Zalando lost more than 5.5%. Covestro and Siemens ended lower by about 3.3% and 3%, respectively.

In Paris, Carrefour rallied 3% after Morgan Stanley initiated coverage with an "overweight" rating. STMicroElectronics, Eurofins Scientific, Essilor and Capgemini surged 2 to 3%.

Dassault Systemes, L'Oreal, Unibail Rodamco, Vivendi, Teleperformance, Thales, Alstom, Bouygues, Saint Gobain, LVMH and Airbus Group gained 1 to 2%.

On the economic front, survey results from the statistical office Insee showed French consumer confidence improved in June to the highest level in just over one year, as households' and general financial situations increased amid a sharp easing in inflation expectations.

The consumer sentiment index rose to 85 in June from 83 in May. Further, this was the highest score since May 2022.

Consumer sentiment in Germany is set to fall in July after eight consecutive increases as high inflation squeezed households' spending power damping private consumption. The consumer confidence index unexpectedly dropped to -25.4 in July from a revised -24.4 in June, data from the market research firm GfK showed on Wednesday. The reading was forecast to improve to -23.0.

Data published by the European Central Bank revealed Eurozone money supply and bank lending continued to register slower growth in May in response to the central bank's tightening stance.

The broad monetary aggregate M3 grew 1.4% on a yearly basis, slower than the 1.9% rise in April. This was the slowest growth in nine years. Economists were forecasting an increase of 1.5% in May.

Meanwhile, the narrow measure M1 that comprises currency in circulation and overnight deposits declined 6.4% in May, which was bigger than April's 5.2% decrease. Data showed that credit to the private sector logged a weaker growth in May.