FX.co ★ Major European Markets Close Higher

The major European markets ended the trading day on a high note on Wednesday in response to encouraging economic growth across the UK and favourable company earnings reports. However, the gains were moderated due to prevailing uncertainties surrounding the near-term interest rate plans of the Federal Reserve.

The pan-European Stoxx 600 saw a marginal gain of 0.16%, while the UK's FTSE 100 improved by 0.31%. France's CAC 40 rose 0.62% and Switzerland's SMI appreciated by 0.24%. Conversely, Germany's DAX saw a slight decline of 0.02%. Other European markets demonstrated a mixed performance; Austria, Greece, Norway, Spain and Sweden ended higher, while Belgium, Denmark, Finland, Iceland, Poland, Portugal, Russia and Turkey recorded losses. The Netherlands' market closed flat.

In the UK, Antofagasta and Anglo American Plc posted significant gains exceeding 5%, while Glencore rallied by around 3.5%. Other companies including Entain, United Utilities, Flutter Entertainment, Endeavour, BP, Aviva, Convatec Group, Royal Dutch Shell, British American Tobacco, Severn Trent, Reckitt Benckiser, National Grid and Beazley saw increases ranging from 1 to 2%. However, JD Sports Fashion, Vodafone, St. James's Place, Admiral Group, RightMove, RS Group, Rentokil Initial, IHG, Standard Chartered, Marks & Spencer, Hikma Pharmaceuticals, Diploma, Howden Joinery and Frasers Group recorded losses between 1 and 3.2%.

In Germany, Zalando's share prices shot up by 19% following its announcement of a €100 million stock buyback. Despite declaring an annual loss for 2023, E.ON and Adidas saw increases of over 6% and around 4.5%, respectively. MTU Aero Engines, HeidelbergCement, Commerzbank and RWE also ended on a high note with 1 to 1.5% gains. In contrast, despite strong financial results in 2023, Volkswagen's shares fell by nearly 6%. Porsche, Deutsche Boerse, Siemens Healthineers, Siemens Energy, Covestro, Qiagen, and Mercedes-Benz also witnessed a drop of 1 to 2.5%.

In Paris, BNP Paribas, Schneider Electric, Total Energies, Hermes International, Thales, L'Oreal, and Renault saw gains between 1 to 2.3%. Alstom, WorldLine, STMicroElectronics, Stellantis, and Legrand closed with losses ranging from 1.7 to 2.3%.

On the economic side, the UK's economy experienced a rebound in January led by the service and construction sectors, as reported by the Office for National Statistics. Meanwhile, Germany's wholesale prices fell by a sharper-than-expected 3% year-on-year. Finally, Eurozone industrial production declined for the first time in three months in January, mainly due to a drop in capital goods output.