Europe open: US data boosts shares; Embracer surges on Saber report

1st Mar 2024 08:02

(Sharecast News) - European shares opened strongly on Friday on the back of falling inflation in the US, while investors turned their attention to eurozone CPI and survey data.

The pan-regional Stoxx 600 index was up 0.46% to 496.9, while Germany's DAX index continued to power ahead with a 0.71% gain to 17,802.

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 figures were met with some relief, especially given recent CPI and PPI readings which came in hotter than expected, thus igniting fears of a reacceleration of inflation," said Interactive Investor head of markets Richard Hunter.

"The news provides the potential for an interest rate cut in June to still be on the table, even if at the broadest level there are few signs of a weakening US economy, let alone one which is veering towards recession."

In the eurozone, CPI is expected to fall to 2.5% year on year from 2.8% the prior month.

In equity news, Swedish games maker Embracer Group surged 13% 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.

Reporting by Frank Prenesti for Sharecast.com