FX.co ★ European Shares Trim Losses As Inflation Falls In March

European stocks fluctuated during the day on Wednesday, eventually stabilizing, following the announcement of a softened Eurozone inflation figure for March. This news aligns with the prediction that the European Central Bank will begin to reduce interest rates in June.

Data from Eurostat revealed that the harmonized index of consumer prices had a yearly increase of 2.4%, which was slower compared to the 2.6% rise witnessed in February. The expected increase rate was 2.5%. Similarly, March's core inflation rate dropped slightly to 2.9% from February's 3.1%.

Potential market influencers to look out for include ADP employment report and Federal Reserve Chair Jerome Powell's remarks. In addition, the U.S. non-farm payrolls data due on Friday might also affect market trading.

The pan-European STOXX 600 index experienced minor losses, taking a slight dip to 50.8.40 after its initial decline. Both Germany's DAX and France's CAC 40 saw minor ascents around 0.2%. However, the UK's FTSE 100 index demonstrated a 0.4% fall.

Meyer Burger, the Swiss solar panel maker, saw a 26% stock decline after announcing that it completed a capital increase through a rights offering. Swiss Re, a reinsurer, also recorded a 2.2% fall in share price, following the announcement that Andreas Berger will assume the role of Group Chief Executive Officer starting 1 July 2024.

In contrast, British engineer Renishaw stocks dropped massively by 4.2% after Siemens of Germany declared it had no plans to bid for the company. Wizz Air Holdings, a budget airline, remained stable despite revealing its passenger traffic and load factor numbers for March.

Topps Tiles declared a 1.5% loss after disclosing decreased sales in the first half of the year and issuing a profit warning. Lastly, Hilton Food, a group involved in meat, seafood, and meat alternatives, experienced a 4.3% drop after announcing only marginal growth in top-line revenue in 2023.