European Shares Gain On Optimism About EU's Growth Outlook
European stocks rose on Monday as investors assessed the results of Turkey’s presidential election and looked for progress in talks on the U.S. debt ceiling.
Traders shrugged off data showing that Eurozone industrial production fell more than expected in March.
Industrial output declined 4.1 percent compared with the previous month, after a 1.5 percent rise in February, Eurostat said.
Elsewhere, Germany’s wholesale prices logged their first decline since December 2020 driven by the sharp fall in mineral oil product prices, data published by Destatis revealed.
The wholesale price index declined 0.5 percent in April from the last year, following March’s 2.0 percent increase.
The euro was trading higher after the European Commission, the executive arm of the EU, said that Eurozone economic growth will be faster than previous forecast this year and next.
In its regular forecast for the 20 countries that share the euro, the EU executive also raised its forecasts for inflation in the region and warned of tighter financing conditions.
The pan European STOXX 600 rose 0.3 percent to 466.78 after gaining 0.4 percent on Friday.
The German DAX edged up 0.1 percent, while France’s CAC 40 and the U.K.’s FTSE 100 both were up around 0.4 percent.
Germany’s Siemens Energy, which supplies equipment and services to the power sector, rallied nearly 4 percent after adjusting its outlook for fiscal year 2023.
French insurer Axa climbed 2.2 percent after reporting a rise in Q1 gross written premiums.
British lender HSBC Holdings rose over 1 percent after it provided a profitable outlook for its business in Asia saying the region is positioned to serve the rest of the world.
Group Chief Executive Noel Quinn commented, “In addition to our core strength in Hong Kong, we now have growth engines in mainland China, India, Singapore and beyond.”
Mining stocks traded higher after China’s central bank injected more liquidity in the banking system to shore up economic growth. Anglo American, Antofagasta and Glencore all rose about 2 percent.
Diploma Plc jumped 2.4 percent after reporting higher pre-tax profit and revenue growth in its half-year.
British American Tobacco declined 1.7 percent after appointing finance director Tadeu Marroco as its CEO.
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