😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

European stocks gain ahead of PMI data; Inditex surges

Published 2024-06-05, 03:14 a/m
© Reuters

Investing.com - European stock markets edged higher Wednesday, rebounding after the previous session’s losses ahead of key regional activity data as investors await the European Central Bank’s latest policy meeting.

At 03:05 ET (07:05 GMT), the DAX index in Germany traded 0.4% higher, the CAC 40 in France rose 0.5% and the FTSE 100 in the U.K. gained 0.3%.

PMIs due before ECB meeting 

The European Central Bank meets on Thursday, and an interest rate cut of 25 basis points from record-high levels is widely expected.

Persuaded by signs of moderating inflation in Europe, policymakers at the ECB have all but promised to ratchet down borrowing costs at their gathering on Thursday.

In a note to clients, analysts at Citi said the region's equities "typically" receive some support from rate cuts, adding that they will likely be boosted by an "inflecting earnings picture" as well.

While a cut on Thursday is largely seen as a certainty, there remain doubts about what the ECB will agree to in terms of rate cuts for the rest of the year after a slightly higher than expected May inflation print in the eurozone on Friday.

French industrial production rose 0.5% on the month in April, an improvement from the drop of 0.2% the prior month, but most eyes Wednesday will be on the final eurozone purchasing managers’ index data for May, a measure of services and manufacturing activity in the single currency area.

Inditex impresses with Q1 sales

In corporate news, Inditex (BME:ITX) stock rose over 4% after the world's largest listed fashion retailer said its sales grew by 7% in the first quarter of its fiscal year, while net profit rose 11%.

The company has outperformed competitors in recent quarters benefiting from investments in new in-store and online experiences. 

Crude falls after US inventories build 

Crude prices slipped lower Wednesday, trading around four-month lows after industry data pointed to a bumper build in U.S. inventories. 

By 03:05 ET, the U.S. crude futures (WTI) traded 0.1% lower at $73.19 per barrel, while the Brent contract dropped 0.1% to $77.47 per barrel.

Both contracts have extended losses into a sixth consecutive session, and were close to their weakest levels since early February. 

Data from the American Petroleum Institute showed U.S. crude inventories saw a build of about 4 million barrels in the week to May 31. Gasoline and distillate inventories also registered increases, raising concerns about demand in the world’s biggest fuel consumer, even as the travel-heavy summer season began. 

The crude market has seen weakness after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, left open over the weekend the possibility of voluntary cuts from eight members to be gradually unwound from October onward.



Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.