European stocks rise as markets await US inflation data, earnings reports
Date
7/11/2024 8:49:59 AM
(MENAFN) European Stocks continued their upward trend in early trading on Thursday, buoyed by a series of upcoming earnings updates and a keen focus on U.S. inflation data, which investors are scrutinizing for insights into the timing of the Federal Reserve's potential interest rate cuts. The pan-European STOXX 600 index edged up by 0.2 percent, driven mainly by gains in the personal goods sector.
Market participants are particularly attentive to the U.S. consumer price data, scheduled for release at 1230 GMT. Expectations are set for inflation to have decreased to 3.1 percent in June, down from 3.3 percent in the previous month. This data is crucial as it will influence the Federal Reserve's monetary policy decisions.
In Europe, Germany's inflation rate dropped to 2.5 percent in June, in line with preliminary figures. This decrease supports the possibility of another rate cut by the European Central Bank (ECB) in September.
On the corporate front, British water company Beynon saw its shares rise by 5.8 percent following the appointment of a new chief financial officer, signaling positive investor sentiment. Conversely, shares of Barry Callebaut fell by 7.1 percent after the Swiss chocolate manufacturer reported a modest increase in sales over the nine months ending in May. Despite the sales growth, higher cocoa prices negatively impacted demand, weighing on the company's performance.
Additionally, shares of Portugal's Galp Energia declined by 3.1 percent after Morgan Stanley downgraded the stock and reduced its price target, reflecting a more cautious outlook on the company's future performance.
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