Europe open: Shares edge ahead as UK exits recession

13th Mar 2024 08:16

(Sharecast News) - European shares edged ahead at the open as investors digested inflation and GDP data from the US and UK respectively.

The pan-European Stoxx 600 index was up 0.07% at 506.83 having hit record levels on Tuesday 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.

In the US 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.

"The UK economy snapped back to growth in January, adding fuel to the fire of speculation that the recession will indeed be super-short and ultra-mild," said Hargreaves Lansdown analyst Susannah Streeter.

"The latest snapshot showed that GDP was estimated to have come in at 0.2%, and while the economy is hardly shooting the lights out in terms of growth, there will be relief that light has emerged at the end of a difficult tunnel for many companies."

In equity news, shares in Vallourec surged after Luxembourg-based ArcelorMittal said it was buying a 28.4% stake in the French recycled-content steel pipe and tube maker.

UK construction firm Balfour Beatty also gained after annual results.

Reporting by Frank Prenesti for Sharecast.com