Europe close: Stocks rebound ahead of US CPI data

10th Jul 2024 14:47

(Sharecast News) - European shares were higher on Wednesday as investors eyed the release of key consumer price data due out the next day in the States and following a downdraft during the previous session.

The pan-European Stoxx 600 index was up 0.91% to 516.42. France's CAC 40 added 0.86% to 7,573.55, as political wrangling continued after Sunday's inconclusive national election result.

Of interest, reports indicated that serious discrepancies had arisen between French Socialists and the far-left France Insoumise party led by Luc Melenchon around the latter economic agenda.

On the economics front, overnight it was reported that Chinese inflation unexpectedly slowed in June, according to figures from the National Bureau of Statistics on Wednesday, adding to concerns that consumer demand is keeping a lid on the economic recovery.

The consumer price index increased at a year-on-year rate of just 0.2% last month, after holding steady at 0.3% for the preceding two months. The consensus forecast was for a slight acceleration in price growth to 0.4%.

In equity news, shares in airport and train station food outlet operator SSP Group surged as the company held annual guidance after third quarter sales rose 16%, driven by increasing demand for leisure travel. Like-for-like revenue was up 6%.

Kongsberg shares dipped even after reporting a 21% rise in operating revenue.

Travis Perkins jumped as it announced the appointment of Pete Redfern as its new chief executive officer on Wednesday, and Geoff Drabble as chair designate, in two big changes to its leadership team.

UK and Ireland building materials group Grafton rose as it reported a fall in half-year sales as consumers retrenched spending on home improvements.