European stocks experienced a slight rise on Wednesday, as investors eagerly awaited UK Chancellor Jeremy Hunt's spring budget announcement. Despite speculation of pre-election indulgences, the limited budget flexibility is expected to restrict significant tax cuts. The budget announcement is scheduled for 7.30 AM ET.
In other news, there was investor delight at the announcement of Germany's exports rebounding at a quicker rate than expected in January. After falling by 4.5 percent the previous month, exports rose by an impressive 6.3 percent, exceeding economists' predictions of a 1.5 percent increase. On the other hand, after a sizeable decline in December, imports saw a 3.6 percent monthly rise.
Unfortunately, the country's construction sector suffered a sharp reduction in size in February, according to survey results from S&P Global, albeit at a slower rate than the previous month.
There are anticipations for a slight recovery in the Euro area retail sales for January, with an expected 0.1 percent increase, following a 1.1 percent drop in December. Eurostat is set to publish these figures later in the day.
Investors are also waiting for testimony from Fed Chair Jerome Powell before the House Financial Services Committee and the Senate Banking Committee later today and tomorrow, respectively.
Ahead of the ECB meeting scheduled for Thursday, wherein no change in interest rates is expected, Eurozone bond yields gently rose. Traders will likely be closely monitoring growth and inflation forecasts.
The pan-European STOXX 600 advanced modestly by 0.3 percent to 497.50, after falling 0.2 percent on Tuesday. Similarly, the German DAX nudged up 0.1 percent, France's CAC 40 increased by 0.2 percent, and the U.K.'s FTSE 100 climbed by 0.3 percent.
In corporate news, shares of the British life insurance company, Legal & General, dropped by 3.3 percent following a flat operating profit announcement for 2023. In contrast, the sustainable energy firm, Ricardo, saw a rise of over 2 percent after reporting reduced losses for the first half of the year. DS Smith, a producer of paperboard and packaging, experienced a 1 percent rise in share price after a promising Q3 report.
Tullow Oil experienced a significant drop of nearly 4 percent after it reported considerable slump in its pretax profit due to lower oil prices and impairments. Symrise AG, manufacturer of flavors and fragrances, climbed by 4.5 percent following a reported 2023 core profit that surpassed estimates.
Shares of DHL owner Deutsche Post fell by 5.1 percent following a warning that earnings could remain flat for the current year, while chemical giant BASF gained 2.3 percent on the news of renaming two of its dispersion plants in China.
