European stocks made gains on Friday, as investors responded well to U.S. inflation data that matched expectations and remarks from Federal Reserve officials hinting at potential rate reductions in June.
Meanwhile, local flash estimates revealed a slight deceleration of manufacturing activity in the Eurozone in February, with weak demand being the primary cause. Eurozone Consumer Price Index (CPI) numbers, together with U.S. reports on manufacturing activity, construction expenditure, and consumer sentiment, are expected to draw the attention of investors later in the day.
The STOXX 600, a broad benchmark index of 600 European stocks, saw an increase of 0.4 percent to 496.76 following a largely static performance on Thursday. Notable national gains included Germany's DAX and the UK's FTSE 100 growing by 0.5 and 0.7 percent respectively, while France's CAC 40 showed a modest rise of 0.1 percent.
Dutch insurance company, Aegon, experienced a substantial fall of 3.7 percent after it reported a net loss of 199 million euros for the full year of 2023. Conversely, German aerospace and defense company Rheinmetall AG enjoyed a rise of over 1 percent following the announcement of a new contract to supply Skynex air defense systems to a European client.
Sixt SE, Germany's leading car rental provider, saw a 1 percent increase. The company presented an optimistic revenue and earnings projection for the full year, despite facing challenges in the first quarter. Following a successful fiscal year in 2023, Daimler Truck's share prices surged by a notable 13.5 percent after announcing a dividend rise and a share buyback program.
Airbus SE reported slight gains in Paris after announcing firm orders for 155 multi-mission helicopters at the Heli-Expo 2024 trade show. However, Vallourec SA, a provider of tubular solutions, saw shares drop by 5 percent despite reporting an increased profit for the fourth quarter compared to the same period in the previous year.
Encouraging data, indicating the first increase in UK house prices in over a year, boosted shares of British homebuilder Barratt Developments by 1.2 percent and Taylor Wimpey by 1.1. Additionally, logistics-focused real estate company, Tritax Big Box, saw a 1.7 percent increase in value after reporting solid profit growth in 2023.
On the other hand, property portal Rightmove's stocks fell 4.3 percent as it anticipated 7-9 percent revenue growth in 2024. Shares of ITV soared by 14 percent following the sale of its 50 percent stake in digital subscription streaming service BritBox International to BBC Studios, ITV's joint venture partner, for 255 million pounds to be paid in cash.
