Europe close: Stocks mostly higher despite US CPI data, ECB ahead
European shares rallied to be in positive territory after a weak start on Wednesday as traders brushed off a slightly stronger-than-expected print for consumer prices in the US.
The pan-regional Stoxx 600 index was up 0.28% at 519.95, with most bourses following suit. Spain's Ibex was down 1.47% due to the drag from fashion giant and index heavyweight Inditex.
"Risk sentiment had been kept in check ahead of the inflation print today, but the news has unleashed fresh buying," said IG chief market analyst Chris Beauchamp.
"Technically the ‘Santa Rally’ doesn’t usually start for a few more days, but the Nasdaq 100 has got its gains in early, surging to a new record high. Interestingly, we have seen the dollar push higher too even though today’s figures are unlikely to mean the Fed will swerve from a rate cut next week. But looser rates should mean stronger economic growth, reinforcing the desire of investors to keep investing in the US."
Worth noting, the European Central Bank was widely expected to announce a 25 basis point interest rate cut in the following session.
In equity news, Zara owner Inditex fell nearly 7% after the fast-fashion retailer missed estimates on third-quarter sales.
German energy group Siemens Energy ended up even after US rival GE Vernova's chief executive said he was cautious about the outlook for the struggling wind sector.
Investors in Adidas brushed off early caution due to news that authorities had raided its headquarters in Germany as part of a years-long tax investigation.
Optics giant Carl Zeiss slumped 12% on poorly received annual results.
About You soared 66% after German online retailer Zalando said it would acquire the fashion group in a €1.1bn deal. Zalando shares reversed early losses to trade up 2% on the news.