PARIS (Reuters) – The main European stock markets opened higher on Wednesday, as the slowdown in British inflation supported the markets after US activity data deemed encouraging.
In Paris, the CAC 40 gained 0.42% to 7,349.61 points around 07:40 GMT. In Frankfurt, the Dax advances by 0.22%, against 1.35% for the FTSE, in London.
The pan-European FTSEurofirst 300 index rose by 0.32%, the EuroStoxx 50 by 0.33% and the Stoxx 600 by 0.31%.
New York index futures suggest a mixed opening on Wall Street, with the Dow Jones gaining 0.17%, while the Standard & Poor’s 500 and Nasdaq are flat.
UK inflation slowed more than expected in June, to 7.9% versus consensus 8.2%, which supported European equities. On Tuesday, US retail sales showed that consumer momentum remained strong in the United States, “Around the world, markets are reacting to every data point, and the reaction this morning is no different,” recalls Kit Juckes, head of currency strategy at Societe Generale. “The latest data reinforces the central theme that the magnitude of upcoming rate hikes will not be greater than what is currently in market prices.”
Final inflation in the euro zone is expected on Wednesday at 09:00 GMT, and will have an impact on investor sentiment if it surprises the consensus.
In stocks, Kering jumped 5.63% after appointing Jean-Francois Palus as interim CEO of Gucci on Tuesday, with current CEO Marco Bizzarri due to step down on September 23.
Nexans climbed 4.76% after securing a record contract worth 1.4 billion euros.
Wacker Chemie lost 1.91% after lowering its earnings forecast for 2023.
(Report Corentin Chapron, edited by Kate Entringer)
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