European Shares Gain On Rate Cut Expectations

European stocks advanced on Friday as investors reacted favorably to in-line U.S. inflation data and comments from Fed officials signaling the possibility of rate cuts in June.

Closer home, flash estimates showed earlier in the day that Eurozone manufacturing activity slowed slightly in February amid weak demand.

Eurozone CPI numbers along with U.S. reports on manufacturing activity, construction spending and consumer sentiment may garner investor attention later in the day.

The pan-European STOXX 600 was up 0.4 percent at 496.76 after ending largely unchanged on Thursday.

The German DAX added half a percent, France’s CAC 40 edged up 0.1 percent and the U.K.’s FTSE 100 climbed 0.7 percent.

Aegon tumbled 3.7 percent. The Dutch insurer posted a net loss of 199 million euros for the full-year 2023.

German aerospace and defense company Rheinmetall AG rose over 1 percent as it received a further contract to supply Skynex air defense systems to a European customer.

Germany’s Sixt SE gained 1 percent. The car rental leader outlined optimistic revenue and earnings forecast for the full year after a challenging first quarter.

Daimler Truck soared 13.5 percent. The truck maker lifted dividend and announced a share buyback program after 2023 profit topped forecasts.

Aerospace major Airbus SE edged up slightly in Paris. The company announced 155 commitments, including 40 firm orders, for its various multi-mission helicopters at the Heli-Expo 2024 trade show.

Vallourec SA shares slumped 5 percent despite the provider of tubular solutions announcing a profit for its fourth quarter that increased from the same period last year.

British homebuilder Barratt Developments rose 1.2 percent and peer Taylor Wimpey added 1.1 percent after data showed U.K. house prices increased for the first time in more than a year in February.

Tritax Big Box added 1.7 percent after the logistics-focused real estate group reported solid profit growth in 2023.

Property portal Rightmove slumped 4.3 percent after it forecast 7-9 percent revenue growth in 2024.

ITV surged 14 percent. The media firm has sold its entire 50 percent interest in digital subscription streaming service BritBox International to BBC Studios, ITV’s joint venture partner, for 255 million pounds, to be paid in cash.

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