The Stoxx 600 index ended 0.7 per cent higher, coming off the back of a nearly 1 per cent drop over the first two sessions of the year
European stocks closed higher Thursday following two downbeat sessions amid uncertainty over central bank rate cuts.
The Stoxx 600 index ended 0.7 per cent higher, coming off the back of a nearly 1 per cent drop over the first two sessions of the year. In sector moves, banking stocks jumped 1.8 per cent while technology dropped 0.4 per cent.
Retail stocks dropped 0.8 per cent as trading updates painted a mixed picture. Clothing store Next increased to a record high after lifting its full-year profit outlook for a fifth time, despite flagging potential 2024 risks including stock delays from trade disruption. Shares of the London-listed stock closed 5.8 per cent higher.
However, Britain’s JD Sports slumped 23 per cent as it said late-year sales were marginally below its prediction. Its gross margin rate for the period was also below expectations, which it attributed to an “elevated level of promotional activity” during the peak trading season, and cautious consumer spending.
French inflation figures meanwhile showed consumer prices increasing 3.7 per cent YoY in December, a marginal increase from 3.5 per cent in November. Statistics agency Insee said the rise was driven by energy and services, and that manufactured products and food inflation should slow down.
Euro zone composite purchasing managers’ index figures were also out Thursday, showing a continuation of the contraction in output that started in June.
In the US, investors are monitoring releases on initial jobless claims and private payrolls. U.S. stocks were higher on Thursday as market participants looked to recover from an early year slump.
China led losses in Asia-Pacific markets, followed by Japan stocks which resumed trading after an extended New Year’s holiday.
