European Stocks Move Mostly Higher Following U.S. Inflation Data

After showing a lack of direction early in the session, European stocks moved mostly higher over the course of the trading day on Friday.

The strength that emerged on the day came after the U.S. Labor Department released slightly tamer-than-expected producer price inflation, increasing confidence the Federal Reserve will continue to lower interest rates.

Traders also looked ahead to a weekend press briefing from China’s finance minister, where details on the country’s fiscal policy adjustments geared towards fostering economic revival will be revealed.

In regional economic news, German consumer price inflation eased further as initially estimated in September to the lowest level in just over three-and-a-half years, Destatis reported earlier today.

The consumer price index registered an annual increase of 1.6 percent in September, slower than the 1.9 percent rise in August. That was in line with the flash data published on September 30.

Further, this was the lowest inflation rate since February 2021, when prices had risen 1.5 percent.

Inflation, based on the harmonized index of consumer prices, also decelerated to 1.8 percent in September from 2.0 percent a month ago.

Elsewhere, official data showed the U.K. economy returned to growth in August, but the pace of expansion was weaker than in the first half of the year.

The real economy grew 0.2 percent in August after showing nil growth in July and June, the Office for National Statistics said. The rate came in line with expectations.

The pan European STOXX 600 Index climbed 0.6 percent after falling 0.2 percent in the previous session.

The German DAX Index advanced by 0.9 percent and the French CAC 40 Index rose by 0.5 percent, while the U.K.’s FTSE 100 Index edged up by 0.2 percent.

In corporate news, Saga soared more than 9 percent in London after an update that it is in exclusive talks with Ageas SA/NV to form a 20-year motor and home insurance partnership and sell its underwriting business.

Oxford Metrics surged by 7.0 percent after it announced the strategic acquisition of The Sempre Group Holdings Ltd, a measurement specialist that offers high precision metrology solutions.

German online retailer Zalando jumped by 1.2 percent after raising its financial outlook for 2024.

Meanwhile, Recruiter Hays fell by 1.1 percent after forecasting a decrease in first-half operating profit from the previous six-month period.

Energy giant BP edged lower on the day after releasing its third quarter 2024 trading statement.