European stocks largely advanced on Wednesday as investors absorbed varied earnings reports and anticipated the U.S. Consumer Price Index (CPI) release for further market direction.
The euro area economy rebounded in the first quarter, as per Eurostat's flash estimate. GDP grew by 0.3% quarter-on-quarter, reversing the 0.1% declines observed in both the third and fourth quarters of 2023. This growth rate aligns with preliminary estimates released on April 30. Annually, the growth rate increased to 0.4% from 0.1%.
Additionally, Eurostat data indicated that Eurozone industrial production saw a 0.6% month-on-month increase in March, surpassing the forecasted 0.5% growth.
The pan-European STOXX 600 index rose by 0.3% to 523.43, building on a 0.2% rise from Tuesday. Germany's DAX climbed 0.6%, the UK's FTSE 100 added 0.3%, while France's CAC 40 saw a slight decline.
In corporate developments, Poland's InPost surged by 9.4% following a 36% jump in Q1 core profit. Conversely, ABN AMRO Bank's shares fell by 4.6% as the Dutch lender reported a weaker capital ratio due to increased risk-weighted assets. Finland's Neste dropped more than 13% after lowering its 2024 margin guidance for renewable products.
British credit data firm Experian soared nearly 8% after forecasting annual organic revenue growth of 6% to 8% for fiscal year 2025. Britvic, a beverages company, surged 11% following a significant rise in interim profit and revenue, alongside the announcement of a £75 million share buyback.
Engineering group Hunting jumped 23% on news of securing a $145 million order from Kuwait Oil Company. Vodafone gained 4.6% after initiating a €500 million share buyback program.
German conglomerate Merck KGaA rose 4.1% as its Q1 adjusted profit decline was less than anticipated. However, Thyssenkrupp shares fell by 4.3% after the company cut its annual sales and profit forecasts for the second time in three months.
Lastly, Commerzbank leapt 4.6% after reporting its best quarterly profit in over a decade and upgrading its lending income outlook for the year.
