Europe midday: Shares stage rally; LPP suspended on Hindenburg report

15th Mar 2024 12:34

(Sharecast News) - European markets rallied at lunchtime on Friday while LPP Group shares were suspended after short seller Hindenburg Research claimed the Polish retailer's Russian divestments were a "sham", causing the stock to plunge.

The pan-European Stoxx 600 was up 0.24% in early deals at 507.62. France's CAC 40 was higher, despite consumer prices in rising 3.2% year-on-year in February, slightly more than initially expected due to higher energy prices.

Wholesale inflation in the US rose more quickly than anticipated, due in large part to higher energy prices. In seasonally adjusted terms producer prices rose by 0.6% month-on-month and by 1.6% year-on-year. Economists had forecast increases of 0.3% and 1.1%, respectively.

Oil prices slipped 0.2% this morning but were still on track for a weekly gain of almost 4% this week. The International Energy Agency, on Thursday raised its forecasts for demand and predicted a small deficit this year, as Opec countries and their allies are expected to extend their output cuts. Meanwhile US inventories of crude fell unexpectedly.

Brent crude was down 0.42% to $85 a barrel, with West Texas Intermediate 0.47% lower at $80.88.

In equity news, shares in British Airways owner IAG took off after BNPP Exane and Raymond James both upgraded the stock to 'outperform'.

Vodafone gained after reaching a deal with Swisscom to offload its Italy business for €8bn, enabling the UK company to return €4bn to shareholders. Swisscom also rose on news of the agreement.

Shares in Polish fashion retailer LPP plunged 27% on the Hindenburg claims.

Reporting by Frank Prenesti for Sharecast.com