European Shares Gain Ahead Of UK Budget

European stocks edged higher on Wednesday as U.K. Chancellor Jeremy Hunt delivers his spring budget in the parliament later in the day.

Hunt is expected to offer pre-election giveaways, but the limited headroom reduced the scope for major tax cuts. The announcement is due at 7.30 AM ET.

Meanwhile, investors cheered data showing that Germany’s exports rebounded at a faster-than-expected pace in January.

Exports posted a monthly growth of 6.3 percent in January after falling 4.5 percent in the previous month. This was also far better than economists’ forecast of 1.5 percent increase.

Imports advanced 3.6 percent on month, in contrast to the 6.7 percent decrease in December.

Separately, survey results from S&P Global revealed that Germany’s construction sector shrank sharply in February, but the pace of decline slowed from the previous month.

Eurostat is scheduled to publish euro area retail sales for January. Economists expect retail sales to gain 0.1 percent on month, in contrast to the 1.1 percent decrease in December.

Fed Chair Jerome Powell is due to testify before the House Financial Services Committee later today and the Senate Banking Committee on Thursday.

Eurozone bond yields edged up, heading into Thursday’s ECB meeting. With no change in interest rates expected, traders are likely to keep a close eye on growth and inflation forecasts.

The pan European STOXX 600 was up 0.3 percent at 497.50 after declining 0.2 percent on Tuesday.

The German DAX edged up 0.1 percent, France’s CAC 40 added 0.2 percent and the U.K.’s FTSE 100 was up 0.3 percent.

Inn corporate news, British life insurer Legal & General tumbled 3.3 percent after posting flat operating profit for 2023.

Ricardo, a sustainable energy company, rose more than 2 percent after narrowing its first-half loss.

Paperboard and packing producer DS Smith added about 1 percent after it showcased a resilient Q3 with a positive outlook and strategic focus on pricing, efficiency, and sustainable solutions.

Tullow Oil lost nearly 4 percent after its pretax profit slumped on lower oil prices and impairments.

Symrise AG, a maker of flavors and fragrances, jumped 4.5 percent after its 2023 core profit beat estimates.

DHL owner Deutsche Post lost 5.1 percent after a warning that earnings could remain relatively flat this year.

BASF rose 2.3 percent. The company said it is changing the name of two dispersions plants in China.

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