Europe open: Stoxx hits new high on earnings as investors eye US CPI

15th May 2024 08:17

(Sharecast News) - European shares rallied to a fresh record high at the open on Wednesday as investors digested another raft of corporate earnings and looked ahead to a widely anticipated US inflation release.

The pan-European Stoxx 600 index was up 0.28% to 523 having hit 523.81 in early deals, with regional bourses all higher.

"The key CPI reading in the US later will be crucial as far as sentiment is concerned, as it looks set to indicate that patience will be needed, before the Fed will feel comfortable about lowering rates," said Hargreaves Lansdown analyst Susannah Streeter.

"Brent Crude has edged up slightly, trading around $83 a barrel, but it remains considerably weaker, compared to the highs reached last month, as questions pop up about the demand for energy in the world's largest economy."

In equity news, drinks company Britvic surged after posting a jump in interim profit and revenue and announced a £75m share buyback, as it highlighted "strong" customer demand for its brands.

Shares in credit-checking and data giant Experian surged on Wednesday after the company delivered annual results at the top end of expectations and guided to an acceleration in top-line growth for the coming year.

Merck rose 4.5% after better-than-expected adjusted earnings.

Finland's Neste slumped 13.3% to the bottom of the Stoxx after the biofuels producer and oil refiner lowered its 2024 margin outlook for renewable products.

German conglomerate Thyssenkrupp dropped nearly 8% after cutting its annual forecasts for sales and net profit for the second time in three months.

Reporting by Frank Prenesti for Sharecast.com