European stocks are rising; inflation optimism continues despite weak UK growth By Investing.com
Investing.com – European stock markets rose on Thursday, adding to the previous session’s sharp gains after benign US inflation held off a potential rate cut by the Federal Reserve, although weak UK economic growth weighed on sentiment.
At 03:05 ET (08:05 GMT), it was up 0.3% in Germany, up 0.7% in France and up 0.6% in the UK.
Optimism after subdued US inflation
The decline and strong earnings at a number of major US banks helped Wall Street’s main indexes post their biggest daily percentage gains on Wednesday since Nov. 6 – the day after the US presidential election.
That optimism fed into the European market, with pan-European notching its strongest daily result in four months.
Gains continued on Thursday, although they were tempered by data that showed Britain grew for the first time in three months in November, but less than expected, rising 0.1% from October.
In addition, German rose 0.5% month-on-month in December, slightly above expectations of 0.4% and rebounding from a 0.2% decline recorded in November.
Car manufacturers in the spotlight
In corporate news, shares of Stellantis (NYSE: ) rose 1.5% after the auto giant reported that its fourth-quarter shipments fell 9% from a year earlier to 1.395 million vehicles.
Stellantis, currently focused on reducing overstocking, said the numbers improved compared to the third quarter, when global shipments fell 20% year-on-year.
Renault (EPA: ) shares rose 1.5% after the French automaker said sales rose 1.3% in 2024, with a strong fourth quarter driven by new launches that helped offset weak demand at the start of the year.
Richemont (SIX:), the owner of Cartier jewelry, beat market expectations for third-quarter sales, a positive sign for the high-end luxury sector during the all-important holiday season.
On the other hand, Taiwan Semiconductor Manufacturing (NYSE: ) reported better-than-expected fourth-quarter profit as the world’s largest contract chip maker continued to benefit from strong demand for its advanced AI-powered chips.
Crude oil extends recent highs
Oil prices rose on Thursday, adding to recent highs, boosted by a combination of weaker US inflation data, new sanctions on Russian oil and a significant draw in US crude inventories.
By 03:05 ET, U.S. crude futures (WTI) were up 0.2% at $78.81 a barrel, while the contract was mostly trading at $82.01 a barrel.
Oil prices rose more than 2% on Wednesday, to their highest levels since July, as a benign US inflation report reinvigorated expectations of looser monetary policy, potentially supporting economic growth.
Supporting the bullish sentiment, the US Energy Information Administration reported a 2 million barrel drop in crude inventories, indicating a supply squeeze.
