European stock markets rise ahead of EU inflation datawritten by Bella Palmer
The FTSE 100 was up 0.05 per cent, the CAC added 0.2 per cent, the Frankfurt DAX was up around 0.3 per cent, and the Stoxx 600 added 0.1 per cent
European stock markets rose on Thursday as traders waited for news of the latest EU inflation data.
In London, the FTSE 100 was up 0.05 per cent after opening, while the CAC added 0.2 per cent in Paris as the French economy contracted unexpectedly in the last quarter.
The Frankfurt DAX was up around 0.3 per cent, and the Stoxx 600 added 0.1 per cent.
It comes as the consumer price index (CPI) is expected to decline to 2.7 per cent, from 2.9 per cent in October, closer to the ECB's target of 2 per cent, bringing 2024 rate cut bets into view. Core Consumer Price Index (CPI) is expected to slow to 3.9 per cent from 4.2 per cent.
The latest flash CPI inflation numbers from Germany and Spain that were released yesterday, showing that inflation in Europe is declining at a higher rate.
Meanwhile, updated Gross Domestic Product (GDP) data released this morning showed that France’s economy shrank 0.1 per cent during July-September.
This was worse than the first estimate of 0.1 per cent growth for the third quarter, and follows growth of 0.6 per cent in the second quarter.
Yesterday saw a broadly positive session for markets in Europe with the DAX outperforming, while the FTSE100 slid back for the third consecutive day, in a month which has seen the UK benchmark underperform considerably compared to the rest of its peers, Michael Hewson, chief markets analyst of CMC Markets, said.
Hewson added: The DAX and S&P 500 look set to post their best month of gains since November last year as investors begin to price in the prospect of rate cuts next year in the face of sharply dropping inflation.
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