European stocks were positively performing on Friday, with the French market excelling due to extensive purchasing triggered by January's increased consumer confidence data. The stability in the European markets was also affected by the signs of inflation slowing down in the Eurozone.
Investors eagerly await the U.S.'s PCE inflation data release for further clues about the possible trajectory of the Federal Reserve's policies.
The Pan-European Stoxx 600 enjoyed a 0.94% rise. The UK's FTSE 100 experienced a gain of 1.23% while Germany's DAX increased by 0.17%. France's CAC 40 soared as much as 2.1%, with Switzerland's SMI growing close to 1.5%.
Countries such as Austria, Belgium, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Portugal, Russia, Spain, Sweden, and Turkey were all experiencing a positive trajectory, with only Iceland and Poland trading weakly.
The luxury sector in the European markets saw a boost prompted by LVMH's strong fourth-quarter sales. The banking sector shares also outperformed.
Top gainers in the UK market included Croda International and Diageo, climbing 4.5% and 4.3%, respectively, along with St. James’s Place (rising 3.5%), and Burberry Group (up nearly 3%). Several companies, including Barclays Group and Royal Dutch Shell, also experienced an increase between 1.4% to 2.5%.
On the other hand, J Sainsbury was down by 1.7%, with Tesco and BAE Systems also experiencing declines.
In Germany, Sartorius's value shot up by 7%, with Merck gaining 5.5% and Porsche recording an increase of 3.1%. Some companies experienced decreases, with Bayer notably declining by over 2%.
The French market was buoyed by LVMH's nearly 11% rise following a 10% jump in their fourth-quarter sales. Companies like Pernod Ricard and Kering also benefited, gaining 7% and 4.7% respectively.
GfK's Consumer Climate Indicator recorded a drop for February, reflecting weak consumer confidence. However, France saw an increase in its Consumer Confidence indicator in January, rising from 89 to 91 according to INSEE data.
The European Central Bank's Survey of Professional Forecasters indicated a downgrade of inflation expectations for the Eurozone for the current year as well as the next due to lower oil prices, reduced economic activity, and lesser actual inflation figure outcomes. The headline inflation was reduced to 2.4% from 2.7% for this year, whereas expectations for the following year declined from 2.1% to 2%.
