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30 Nov, 2024 10:24 30 Nov, 2024 10:24

Europe close: Stocks end month on a positive note

ecb dl euro bonds economy bank notes consumer inflation
New signature for euro banknotesAngela Morant/ Courtesy of the European Central Bank

European shares advanced on Friday as investors assessed a slight rise in eurozone inflation.

The pan-regional Stoxx 600 index was up 0.58% at 510.25 points with all major bourses trading higher on a day with little corporate news on offer and US markets scheduled to open for only a shortened trading session in observance of the Thanksgiving holiday.

Euro area inflation picked up in November in annual terms to 2.3%, although some economists were expecting that it would soon head lower again. According to a preliminary estimate from Eurostat, in seasonally adjusted terms, prices fell by 0.3% month-on-month, as services prices fell by 0.9% whilst those for energy rose by 0.6%.

In France, Prime Minister Michel Barnier on Thursday announced a major concession in a bid to end a standoff with the opposition over his planned austerity Budget, which has seen the cost of government borrowing soar, spooked investors and led to threats from far-right parties to bring down his minority government.

In a U-turn, Barnier told the Le Figaro daily that a previously planned increase for an electricity tax would no longer be included in the Budget.

In economic news, German retail sales fell more than expected in October, decreasing by 1.5% compared with the previous month, according to official data published on Friday.

The figures compared with a 1% rise in October 2023 and expectations of a 0.3% decline.

In equity news, Canada's ABC Technologies said it had struck a £1bn deal to buy Britain's TI Fluid Systems for 200p a share in cash.

Shares in London-listed Georgian banks TBC Bank and Bank of Georgia fell sharply on news that the Georgian government would suspend talks on European Union accession and refuse budgetary grants until 2028.

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