European Shares Gain After UK, Eurozone Inflation Data

(RTTNews) - European stocks traded higher on Wednesday after falling sharply the previous day on concerns about escalating geopolitical tensions and uncertainty about the outlook for U.S. rates.

In economic releases, data showed U.K. consumer price inflation rose by less than expected to 3.2 percent in March from 3.4 percent in February, making it likely that the Bank of England will lower its key interest rate later this year.

Final data from Eurostat revealed that inflation in the 20 nations sharing the euro currency slowed across the board last month, raising expectations for an ECB rate cut in June.

Euro zone inflation slowed to 2.4 percent from 2.6 percent in February, matching the preliminary estimate released earlier this month.

The pan European STOXX 600 rose half a percent to 500.77 after falling 1.5 percent in its worst session in nine months on Tuesday.

The German DAX gained half a percent, France's CAC 40 jumped 1.1 percent and the U.K.'s FTSE 100 was up 0.4 percent.

In corporate news, Swedish commercial vehicle major AB Volvo rose 2.4 percent after its Q1 adjusted operating profit beat forecasts.

Dutch semiconductor equipment maker ASML Holding N.V. slumped 4.1 percent after reporting weaker-than-expected new bookings in its first-quarter results.

Likewise, food delivery company Just Eat Takeaway.com lost 5.5 percent after orders slipped in the first quarter.

Mining giants Antofagasta, Glencore, Rio Tinto and Anglo American rallied 2-4 percent after iron ore futures climbed to their highest levels in more than five weeks.

Fast-fashion retailer ASOS climbed 2.5 percent after backing its guidance for the fiscal year and naming a new CFO.

Saga, a specialist in products and services for people over 50, declined 1.7 percent after it posted a loss before tax of 129.0 million pounds for the year ended 31 January 2024.

Gambling group Entain climbed 3 percent after delivering Q1 online gaming revenue ahead of expectation.