BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks closed higher on
Thursday after data showing a drop in U.S. consumer price inflation in the month
of June raised expectation of an interest rate cut by the Federal Reserve in
September.

The Labor Department said U.S. consumer price index slipped by 0.1% in June
after coming in unchanged in May. Economists had expected consumer prices to
inch up by 0.1%.

Excluding food and energy prices, core consumer prices crept up by 0.1% in June
after rising by 0.2% in May. Core prices were expected to increase by another
0.2%.

The report also said the annual rate of consumer price growth slowed to 3% in
June from 3.3% in May. Economists had expected the pace of price growth to
decelerate to 3.1%. The annual rate of core consumer price growth also slowed to
3.3% in June from 3.4% in May. The pace of growth was expected to remain
unchanged.

Encouraging economic data from Germany and the U.K. contributed as well to the
positive mood in the European markets.

The pan European Stoxx 600 gained 0.6%. The U.K.'s FTSE 100 climbed 0.36%,
Germany's DAX and France's CAC 40 ended higher by 0.69% and 0.71%, respectively.
Switzerland's SMI advanced 0.86%.

Among other markets in Europe, Austria, Belgium, Finland, Greece, Norway,
Poland, Portugal, Russia, Spain, Sweden and Turkiye closed higher.

Denmark and Netherlands ended weak, while Iceland settled flat.

In the UK market, Severn Trent gained 3.75% after reporting a strong start to
the year. RightMove and EasyJet climbed 3.5% and 3.2%, respectively.

Schrodders, Persimmon, Fresnillo, Sainsbury (J), United Utilities, Kingfisher,
Ashtead Group, JD Sports Fashion, Segro, IMI, Marks & Spencer and Barratt
Developments gained 2 to 3%.

Shares of water company Pennon soared 11% after naming an insider as its new
CFO.

Vodafone Group, Relx and DCC lost 1.4 to 1.7%. Admiral Group, Darktrace, BP and
M&G also ended weak.

In the German market, Sartorius rallied 5%. RWE, Vonovia, Merck, Siemens
Healthineers, Daimler Truck Holding, Siemens Energy, Adidas, Bayer,
HeidelbergCement, E.ON, BMW, Rheinmetall, Qiagen, Siemens and BASF gained 1 to
3%.

In the French market, Vivendi climbed about 5.5%. Saint Gobain, Teleperformance,
Legrrand, Kering, Pernod Ricard, LVMH, Edenred, Essilor, Hermes International,
Carrefour, Eurofins Scientific, Renault, ArcelorMittal and Dassault Systemes
gained 1 to 3%.

Final data from Destatis revealed Germany's consumer price inflation eased
slightly amid lower costs for energy products, as initially estimated in June.
The consumer price index rose 2.2% in June, following May's 3-month high of
2.4%. That was in line with the flash data published earlier.

EU-harmonised inflation also softened to 2.5% from 2.48%, as estimated.

The UK economy rebounded at a faster-than-expected pace in May underpinned by
broad-based expansion in services, manufacturing and construction industries,
official data showed. Real gross domestic product grew 0.4% in May after showing
no growth in April, the Office for National Statistics reported. The actual
growth was double the expected 0.2% expansion.

The UK housing market conditions continued to remain subdued with indicators on
buyer demand, sales and prices remaining in negative territory but the near-term
outlook for sales turned more optimistic, survey data from the Royal Institution
of Chartered Surveyors showed. The new buyer enquiries measure logged a net
balance of -7% in June, compared to -8% in May.



Copyright(c) 2024 RTTNews.com. All Rights Reserved

Copyright RTT News/dpa-AFX