Advertisement

Updated March 12th, 2024 at 15:56 IST

European shares climb on earnings boost, investors await US inflation data

The pan-European STOXX 600 edged up 0.4% by 2:25 pm, nearing the record peak it hit last week. Basic resources led sectoral gains with a 1% increase.

Reported by: Business Desk
Nikkei
The pan-European STOXX 600 edged up 0.4 per cent. | Image:Shutterstock
Advertisement

European shares rise: European shares surged on Tuesday, buoyed by positive corporate reports and strength in the mining sector, while investors remained attentive to forthcoming US inflation figures for insights into potential interest rate adjustments.

The pan-European STOXX 600 edged up 0.4 per cent by 2:25 pm, nearing the record peak it hit last week. Basic resources led sectoral gains with a 1.0 per cent increase.

Advertisement

Later today, market focus will turn towards the US Consumer Price Index (CPI) report for February, scheduled for release at 6:00 pm. Analysts expect the data to shed light on the Federal Reserve's interest rate cut timeline.

Gene Salerno, Chief Investment Officer at SG Kleinwort Hambros, commented on inflation dynamics, highlighting the significance of service sector trends. Salerno also emphasized the opportune moment for equity investments, citing indicators of a potential industrial resurgence.

Advertisement

Traders are factoring in the likelihood of three to four quarter-point US rate cuts, with a probability of over 70 per cent for the first cut to materialize in June. Similarly, the European Central Bank is poised to implement rate cuts in June following a recent deceleration in euro zone inflation.

German inflation moderated to 2.7 per cent in February as anticipated, with the country's benchmark DAX edging up 0.3 per cent.

Advertisement

Wacker Chemie surged 7.4 per cent atop the STOXX 600 after the chemicals manufacturer forecasted first-quarter results exceeding market projections, driven by robust order intake, particularly in its silicones segment.

Italy's Leonardo rose 4.8 per cent following its announcement to invest in artificial intelligence and other technologies over the next five years.

Advertisement

Oracle shares climbed 6.4 per cent after surpassing quarterly profit estimates, with plans for a joint announcement with chip-giant Nvidia.

Conversely, British homebuilder Persimmon declined 4.0 per cent after falling short of profit expectations and cautioning about subdued market conditions throughout 2024.

Advertisement

TAG Immobilien shares slid 2.1 per cent as the landlord reported losses in 2023 amidst the German property crisis and declared the suspension of dividend payments.

(With Reuters inputs)
 

Advertisement

Published March 12th, 2024 at 15:56 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement

Trending Quicks

Ram Temple Wasn't and Will Never Be Election Issue: PM Modi
4 minutes ago
'Unhappy? Don’t Come to Work': Chinese Company Introduces Unhappy Leaves For Employees
11 minutes ago
FMCG's history of misleading ads
15 minutes ago
Bogota Water Crisis
22 minutes ago
Kerala: Two Men Found Dead Due To Suspected Drug Overdose
23 minutes ago
Meta news tab shutdown
25 minutes ago
Real estate sales up 68%
38 minutes ago
Delhi: Man Sustains Gunshot in Head From Close Range
39 minutes ago
Baisakhi outfits
41 minutes ago
Advertisement
Advertisement
Advertisement
Whatsapp logo