FX.co ★ European Stocks Close Higher Ahead Of Key Economic Data

European stock markets closed marginally up on Wednesday, with Germany among those reporting new record highs due to ongoing hopes for central banks to begin reducing interest rates in the near future. This positive mood persisted despite investors absorbing the latest European economic data and anticipating notable US economic reports, such as personal consumption expenditure which would be released later in the week.

The pan European Stoxx 600 rose by 0.13%, while the UK's FTSE 100 showed a slight increase of 0.01%. Germany's DAX witnessed a more significant climb of 0.5%, and France's CAC 40 ended the day up by 0.25%. Switzerland's SMI also finished positively, with a modest growth of 0.22%.

Several other European markets, such as Austria, Belgium, Finland, Iceland, Ireland, Norway, Poland, Portugal, Russia and Spain, also reported gains. In contrast, Denmark, Greece and Sweden closed weaker, while the Netherlands and Turkey remained static.

In the UK, shares in both Diploma and DS Smith rocketed, the latter confirming talks with International Paper over a proposed all-stock deal worth up to $7.22 billion. J Sainsbury, SSE, AstraZeneca, Airtel Africa, Fresnillo, Reckitt Benckiser, Centrica, Associated British Foods, JD Sports Fashion, Smith & Nephew, EasyJet, Rentokil Initial, Burberry Group and Phoenix Holdings also saw increases of between 1% and 3%.

Meanwhile, in the German market, both Zalando and Bayer achieved growth of roughly 4.8% and 4% respectively. Various other companies like Deutsche Bank, Fresenius Medical Care, Siemens Healthineers, RWE, Munich RE, Beiersdorf, Porsche, Hannover Rueck and Fresenius grew by 1% to 2.5%.

In France, companies like Veolia, Orange, Alstom, STMicroElectronics, ArcelorMittal, Vinci, L'Oreal and Carrefour witnessed advances of 1% to 2%.

In Sweden, fashion retailer H&M realised a huge gain of 15.2%, after exceeding expectations for its first-quarter operating profit.

According to survey data from INSEE, France's consumer confidence had increased in March from its previous score, contrary to economist expectations. Furthermore, recent data from the banking association vdp suggests that following last year's massive decline in real estate financing in Germany due to the most severe property market downturn in decades, a moderate recovery is expected this year.

Lastly, the Eurozone's economic sentiment achieved a three-month high in March due to improvements in all sectors except construction. However, Germany's top five economic think tanks significantly lowered this year's growth forecast for its economy due to both cyclical and structural weaknesses, and sluggish economic activity.