European stocks saw a modest increase on Wednesday, as a decline in bond yields followed the release of U.S. producer inflation data that was softer than anticipated. Investors are now keenly focused on the upcoming U.S. CPI data, which could offer further insights into the Federal Reserve's rate strategy in the months ahead.
The STOXX 600 index across Europe rose by 0.3% to 509.97, indicating a potential end to a three-day downturn. Germany's DAX also increased by 0.3%, while France's CAC 40 showed slight gains, and the U.K.'s FTSE 100 advanced by 0.7%.
The British pound regained ground after experiencing volatility due to data revealing an unexpected moderation in the U.K.'s consumer price inflation for December. Specifically, the consumer price index showed a yearly rise of 2.5% in December, a decline from the 2.6% increase in November. This has led traders to anticipate more Bank of England interest rate cuts throughout the year.
Furthermore, a survey conducted by the British Retail Consortium indicated that U.K. retailers plan to hike prices this year as a response to increased National Insurance costs. Two-thirds of surveyed CFOs intend to raise prices, and about half are considering reducing working hours or overtime.
In other economic news, data from Destatis revealed that German wholesale prices increased by 0.1% year-on-year in December, rebounding from a 0.6% decline in November. This marks the first rise in wholesale prices since May 2023.
On the corporate front, Hays saw a 1.7% increase despite reporting another fall in quarterly fees amid a continuing slowdown in the recruitment market. Serco gained 1.6% after securing a $247 million contract with the U.S. Army. Meanwhile, German wind turbine manufacturer Nordex rose by 1.8% following news of a significant increase in its order intake to 8.34 GW last year, up from 7.36 GW in 2023.
The material has been provided by InstaForex Company -
www.instaforex.com
