LONDON: Europe’s major stock markets rose Thursday in choppy trade after a largely upbeat Asian session, as investors assessed the outlook for global interest rates after the previous day’s sharp losses.
Global stocks had sunk Wednesday as stronger-than-expected US retail sales data dimmed hopes for an early start to US Federal Reserve rate cuts, while weak Chinese growth data gave cause for concern.
London had also been hit by an unexpected but modest acceleration in inflation, which also dampened talk of rate reductions from the Bank of England.
European shares slide more than 1pc on hawkish ECB remarks
Hopes for an early cut by the European Central Bank have also been doused by boss Christine Lagarde who warned no such move was foreseen until the summer.
‘Choppy action’
“European markets are rising after yesterday’s losses as the choppy action that we have seen since the start of the year continues,” City Index analyst Fiona Cincotta told AFP.
“The heightened volatility reflects a market that is realigning central bank rate-cut expectations.
“With the European Central Bank rate decision and US inflation data in store for next week, the choppiness that is characterising 2024 looks set to continue.”
The British capital’s FTSE 100 also shifted back into the black following bright news in the betting sector, after gambling giant Flutter revealed surging annual sales and an imminent US listing.
The news sent its share price rocketing 13 percent to £149.20 to top the FTSE 100 risers board.
In Asia, stocks mostly trod higher, but gains were capped by a lack of meaningful measures by Beijing to boost China’s economy following news of poor 2023 growth.
Hong Kong and Shanghai enjoyed some rare gains on bargain-buying after recent losses, though worries about China’s economic outlook continued to drag on sentiment following Wednesday’s soft economic growth figures.
Wall Street ended in the red on Wednesday after data showed US retail sales smashed forecasts in December as consumers brushed off higher borrowing costs.
The figures followed surprisingly high readings this month on consumer prices and jobs creation, as well as minutes from the Fed’s most recent meeting that showed officials were keen to keep rates elevated for some time to contain inflation.
Oil prices rose Thursday after Islamabad said it had carried out strikes against militant targets in Iran, with Tehran reporting a death toll of seven civilians after staging its own air raid in Pakistan earlier this week.
That came after the United States carried out more strikes on Huthi positions in Yemen as punishment for the Tehran-backed group’s attacks on shipping in the Red Sea, which has ramped up worries about supplies of oil and other exports through the waterway.
Key figures around 1200 GMT
London – FTSE 100: UP 0.2 percent at 7,458.61 points
Paris – CAC 40: UP 0.8 percent at 7,377.65
Frankfurt – DAX: UP 0.6 percent at 16,532.07
EURO STOXX 50: UP 0.7 percent at 4,435.80
Tokyo – Nikkei 225: FLAT at 35,466.17 (close)
Hong Kong – Hang Seng Index: UP 0.8 percent at 15,391.79 (close)
Shanghai – Composite: UP 0.4 percent at 2,845.78 (close)
New York – Dow: DOWN 0.3 percent at 37,266.67 points (close)
Euro/dollar: UP at $1.0893 from $1.0883 on Wednesday
Dollar/yen: DOWN at 147.86 yen from 148.16 yen
Pound/dollar: UP at $1.2688 from $1.2676
Euro/pound: UP at 85.85 pence from 85.84 pence
West Texas Intermediate: UP 1.0 percent at $73.29 per barrel
Brent North Sea Crude: UP 0.2 percent at $78.01 per barrel
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