Europe close: Stocks ccontinue to move higher

13th Mar 2024 16:06

(Sharecast News) - European shares were mostly higher on Wednesday as investors digested data from the US and UK, despite a larger-than-expected fall in eurozone industrial production, while Zalando shares surged after upgrading forecasts.

The pan-European Stoxx 600 index was up 0.16% at 507.33 having hit a new record of 507.74 in the morning session after data showed the UK economy returned to growth in the first month of 2024, according to figures released on Wednesday by the Office for National Statistics.

Gross domestic product rose 0.2% on the month in January, in line with expectations, following a 0.1% decline in December.

In the final three months of 2023, GDP fell 0.3%, having contracted by 0.1% in the previous three months, dipping the economy into a technical recession.

Industrial production fell sharply in the eurozone in January, official data showed on Wednesday, by more than expected.

According to Eurostat, the statistical office of the European Union, industrial production fell 3.2% and by 2.1% across the wider bloc. That compares to downwardly-revised growth of 1.6% in both areas in December and forecasts of a 1.8% dedcline.

In the US, data published the day before had revealed that the consumer price index rose 0.4% in February from January and 3.2% on an annual basis. The monthly measure was in line with expectations while the 12-month reading was slightly higher.

In equity news, shares in Inditex surged 8% after the Spanish fashion giant said 2024 had got off to a strong start.

The owner of Zara, Pull&Bear and Bershka, among others, said its spring/summer 2024 collections had been well received by customers, with total sales in the six weeks to 11 March up 11% year-on-year between 1 February and 11 March.

Shares in Vallourec jumped 7% after Luxembourg-based ArcelorMittal said it was buying a 28.4% stake in the French recycled-content steel pipe and tube maker.

German online fashion retailer Zalando forecast a return to growth this year and said it was opening up its logistics business to more players, raising hopes of a boost to its performance and helping to lift its shares 19%.

UK construction firm Balfour Beatty shot 10% higher following its annual results.

Direct Line tumbled 4% after the UJ insurer said it had rejected a second takeover approach from Belgian rival Ageas as it continues to undervalue the group.