European stocks ended the trading week on a positive note, spurred by anticipations of further rate reductions from central banks, even in the face of accelerating inflation within the eurozone. Market participants also assessed economic data, including France's GDP and key statistics from Germany such as retail sales and unemployment figures.
The pan-European Stoxx 600 saw a rise of 0.58%. Germany's DAX index increased by 1.03%, while France's CAC 40 rose by 0.78%. The UK's FTSE 100 had a modest gain of 0.07%, and Switzerland's SMI climbed 0.46%.
Elsewhere in Europe, indices in Austria, Belgium, Denmark, Ireland, the Netherlands, Poland, Russia, Spain, Sweden, and Turkey also concluded the day higher. Conversely, markets in Greece, Norway, and Portugal closed lower, while those in Finland and Iceland remained unchanged.
In the UK, notable movers included Anglo American Plc, which surged nearly 5.5%, and IMI with a 3.3% gain. Roll-Royce Holdings and other companies like Next, Antofagasta, and Glencore showed gains between 1% and 2.5%. On the downside, BAE Systems fell nearly 5%, with JD Sports Fashion, Berkeley Group Holdings, Prudential, Vodafone Group, and Severn Trent recording losses between 1% and 1.6%.
In Germany, MTU Aero Engines and Infineon each posted gains of approximately 3%. Deutsche Bank, SAP, BMW, Siemens, and Zalando rose between 1.4% and 2%. However, companies like Sartorius, Brenntag, Covestro, and Beiersdorf faced declines.
Over in the French market, Renault posted a significant increase of about 2.7%. Other firms including STMicroElectronics, Edenred, Societe Generale, and Schneider Electric, along with several others like Airbus Group and AXA, saw gains ranging from 1% to 2.5%.
According to Eurostat, inflation within the euro area rose for the second consecutive month in November. The harmonized index of consumer prices (HICP) recorded a 2.3% year-over-year increase, following a 2% rise in October. Core inflation, which strips out volatile items such as food and energy, remained steady at 2.7%, slightly below economists' forecast of 2.8%.
German unemployment rates held steady at 6.1% in November, as reported by the Federal Employment Agency. However, retail sales in Germany fell more sharply than anticipated in October, with a decline of 1.5% compared to the previous month. Additionally, a decrease in import prices was recorded for the second month in a row, dropping 0.8% in October.
France's GDP showed a consistent quarterly growth of 0.4% for the third quarter, as per INSEE, mirroring the growth from the previous quarter.
In the UK, mortgage approvals hit their highest level in over two years in October, a reflection of increasing housing market activity due to falling interest rates. Approvals numbered 68,303, up from 66,115 in September, as reported by the Bank of England. However, consumers appeared more tentative regarding borrowing and saving as the Autumn Budget approached.
Switzerland's economic outlook improved slightly in November, as indicated by a rise in the economic barometer to 101.8 from the previous month's revised 99.5. This marks a cautiously optimistic view of the country's economic momentum.
