LONDON: Europe’s major stock markets rose Thursday in choppy trade after a largely upbeat Asian session, as investors assessed the outlook for global interest rates after the previous day’s sharp losses.
Global stocks had sunk Wednesday as stronger-than-expected US retail sales data dimmed hopes for an early start to US Federal Reserve rate cuts, while weak Chinese growth data gave cause for concern.
London had also been hit by an unexpected but modest acceleration in inflation, which also dampened talk of rate reductions from the Bank of England.
European shares slide more than 1pc on hawkish ECB remarks
Hopes for an early cut by the European Central Bank have also been doused by boss Christine Lagarde who warned no such move was foreseen until the summer.
“European markets are rising after yesterday’s losses as the choppy action that we have seen since the start of the year continues,” City Index analyst Fiona Cincotta told AFP.
“The heightened volatility reflects a market that is realigning central bank rate-cut expectations.
“With the European Central Bank rate decision and US inflation data in store for next week, the choppiness that is characterising 2024 looks set to continue.”
The British capital’s FTSE 100 also shifted back into the black following bright news in the betting sector, after gambling giant Flutter revealed surging annual sales and an imminent US listing.
The news sent its share price rocketing 13 percent to £149.20 to top the FTSE 100 risers board.
In Asia, stocks mostly trod higher, but gains were capped by a lack of meaningful measures by Beijing to boost China’s economy following news of poor 2023 growth.