Europe close: Stocks keep pushing higher

1st Mar 2024 20:17

(Sharecast News) - European shares were all higher at the end of the week with German and French issues at or above all-time highs.

The pan-regional Stoxx 600 index was up 0.60% to 497.58, while Germany's DAX index continued to power ahead with a 0.32% gain to 17,735.07.

Markets were boosted by news that the US personal consumption expenditures price index (PCE) slowed to 2.4% for the year to January, down from December's 2.6% rise. The core PCE index that excludes energy and food edged down to 2.8% from the 2.9% readout in December.

"The German DAX 40 index intraday made its sixth consecutive daily record high as investors continue to favour investing in Europe's largest economy," said Axe Rudolph, senior market analyst at IG.

"It did so despite Eurozone inflation remaining stubbornly high above the 3% mark for core inflation with both it and the headline rate coming in above expectations."

Consumer price gains in the Eurozone slowed by less than expected in February.

Nevertheless, core inflation continued its downward trend, falling to 3.1% - its slowest clip in nearly two years.

The year-on-year change in the headline harmonised index of consumer prices was 2.6% last month, down from 2.8% in January (consensus: 2.4%).

In equity news, the roller-coaster ride of shares in Grifols continued as they jumped 18% on news that the Spanish pharma company's $1.8bn sale of a 20% stake in Shanghai RAAS will proceed after a due diligence process concluded "satisfactorily".

Grifols said the sale to Haier Smart Home, announced in late December, would complete by the end of the first half of this year provided all the regulatory hurdles are cleared.

Swedish games maker Embracer Group surged on reports it was selling its Saber Interactive unit in a $500m deal.

UK broadcaster ITV also soared after announcing it was selling its 50% stake in streaming service Britbox International to BBC Studios for £225m.

German truck maker Daimler also motored after lifting its sales outlook and dividend.

Kuehne+Nagel fell to the bottom of the Stoxx 600 as the logistics giant reported a 48% fall in net earnings last year.