European Stocks Gain On Soft Inflation Data

(RTTNews) - European stocks are broadly higher on Wednesday thanks to soft inflation data from the U.K., and rising expectations that the Federal Reserve's rate hiking cycle will end soon.

The major markets in Europe are all up in positive territory, with the UK market outperforming thanks to data from the Office for National Statistics showing the nation's annual headline inflation falling to a 15-month low to 7.9% in June, down from 8.7% in May. Meanwhile, core inflation came in at 6.9%.

The drop in inflation has strengthened the case for a quarter point rate hike from the Bank of England rather than an aggressive half a percentage point increase at the August meeting.

Meanwhile, final data from Eurostat said the consumer price inflation rate in the Euro Area was confirmed at 5.5% in June 2023, the lowest level since January 2022. However, the core rate, which excludes volatile items such as food and energy, picked up to 5.5 percent, above a preliminary estimate of 5.4%,

The U.K.'s FTSE 100 is gaining 1.62%. Germany's DAX and France's CAC 40 are up 0.2% and 0.5%, respectively. Switzerland's SMI is up 0.36%, while the pan European Stoxx 600 is climbing 0.43%.

Among the top gainers in the UK market, British Land Company is up 8.2%, Persimmon is up 7.5% and Hargreaves Lansdown is gaining 7.1%, while Land Securities, Barratt Developments, Taylor Wimpey, Segro and Just Eat Takeaway.com are up 5 to 6.5%.

Admiral, TUI, Carnival, United Utilities, M&G, Severn Trent, Burberry, Auto Trader Group and Kingfisher are rising 3 to 4%.

Antofagasta is down by about 2.8%, and Anglo American Plc is lower by 1.2%. Glencore, Rio Tinto, BHP and Fresnillo are modestly lower.

In the German market, Vonovia is rallying 7.5%. Sartorius, Zalando, Puma, Continental, Symrise, BASF and Siemens Healthineers are up 1 to 2.3%.

Daimler Truck Holding is declining more than 2% and Covestro is down by about 1.9%. Brenntag, Mercedes-Benz, Siemens, Commerzbank and Infineon are down with moderate losses.

In the French market, Kering is surging more than 5.5%. WorldLine is gaining 4% and Eurofins Scientific is up 2%.

Michelin, Dassault Systemes, Bouygues, Orange, Unibail Rodamco, Renault, Vinci and Teleperformance are advancing 1 to 1.8%.

Publicis Groupe, ArcelorMittal, Schneider Electric and Legrand are down 1 to 1.6%.