Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

European shares near two-year highs at start of data-packed week

Published 02/12/2024, 03:34 AM
Updated 02/12/2024, 12:21 PM
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, February 9, 2024. REUTERS/Staff/File Photo

By Shubham Batra and Amruta Khandekar

(Reuters) -European shares climbed on Monday, tracking a strong rally on Wall Street, while investors looked forward to a key U.S. inflation reading and a raft of economic data from the euro zone this week.

The pan-European STOXX 600 ended up 0.5%, inching closer to the two-year highs it hit earlier this month, while the euro zone blue-chip STOXX50E index was at levels not seen since 2001.

Real estate shares led most European sectoral indexes higher with gains of 1.6%, followed by retailers, which advanced 1.4%

Across the Atlantic, investors will closely monitor the U.S. January consumer price index (CPI) reading on Tuesday for clues on the potential timing of a rate cut by the Federal Reserve.

Headline consumer inflation is expected to slow on both a monthly and yearly basis.

There is optimism "that tomorrow's CPI print from the U.S. will again confirm inflationary pressures are heading lower still", said Stuart Cole, chief macro economist at Equiti Capital.

Cole added that European stocks are also getting a lift from the recent rally on Wall Street. The S&P 500 closed above 5,000 for the first time on Friday, propelled by bets on the potential for artificial intelligence. [.N]

This week is also packed with domestic economic data, including fourth-quarter euro zone GDP growth, consumer price inflation from Spain and other regions, and ZEW economic sentiment surveys.

Italian stocks outperformed regional peers with a 1.0% increase, hitting their highest level since June 2008. The UK's FTSE 100 was a laggard, ending flat.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Also supporting equities was a fall in European bond yields following dovish remarks from ECB Governing Council member Fabio Panetta on Saturday. [GVD/EUR]

On Monday, ECB board member Piero Cipollone said the central bank does not need to dampen the euro zone economy even more to get inflation under control.

Among individual movers, shares of Tod's surged 18.4% after private equity firm L Catterton offered to buy 36% of the luxury shoemaker and take it private.

Saras dropped 3.7% as global commodity trader Vitol agreed to buy 35% of the oil refiner from Italy's Moratti family at 1.75 euros per share, valuing the entire group at 1.7 billion euros.

Just Eat Takeaway was the top gainer on the STOXX 600, up 8.8%, while Delivery Hero rose 4.5% after Deutsche Bank raised its target price on the stocks.

Siemens Energy advanced more than 5.7% after an upgrade by BofA Global Research.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.