Europe: Stocks trim early gains after US CPI data
EUROPEAN stocks pared early gains on Thursday after US September inflation rose by more than expected, while Novo Nordisk’s kidney drug trial success helped lift Denmark’s benchmark index to a record high.
The pan-European Stoxx 600 index was up 0.1 per cent, after earlier hitting a three-week high.
“Today’s US CPI number was not necessarily enough to keep the bullish enthusiasm going,” said Steve Sosnick, chief strategist at Interactive Brokers.
US consumer prices (CPI) rose 0.4 per cent in September compared to forecasts of a 0.3 per cent rise from economists polled by Reuters. On an annual basis, CPI rose to 3.7 per cent versus estimates of 3.6 per cent.
Energy stocks climbed 1.3 per cent, leading sectoral gains, after oil prices rose on expectations that US interest rates had peaked.
Meanwhile, Novo Nordisk shares jumped 4.2 per cent and touched a fresh record high after the Danish drugmaker had reported early signs of success in delaying the progression of kidney disease in diabetes patients.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The broader OMX Copenhagen 20 hit a record high and closed 2.3 per cent higher.
Longer-dated eurozone bond yields and US Treasuries crept higher after the US CPI data, having fallen earlier in the session.
Rate sensitive utilities and real estate stocks fell 0.7 per cent and some 1 per cent respectively.
Minutes from the European Central Bank’s September meeting, released on Thursday, showed a division among policymakers when they opted to raise the deposit rate to a record 4 per cent, but signalled an end to the tightening cycle.
Media stocks jumped 0.9 per cent to a fresh 22-year high, with advertising group Publicis hitting a record high after raising its 2023 sales and margin forecasts.
In Britain, Restaurant Group shares surged 36 per cent after an Apollo Global owned and managed vehicle announced the acquisition of the Wagamama owner for £506 million (S$853.2 million) in cash.
Halfords shares closed at a two-month high, after Betaville reported there has been takeover interest.
Meanwhile, Barclays dropped 3.1 per cent, underperforming the wider market, with several sources attributing the fall to comments by the bank’s CEO about the broader sector outlook. REUTERS
Share with us your feedback on BT's products and services
