FX.co ★ European Stocks Edge Higher as Inflation Eases

European stocks experienced gains on Wednesday, with the STOXX 50 rising by 0.4%, surpassing the 6,000 mark, while the broader STOXX 600 increased by 0.2%, reaching a record high of 619 points. These movements were bolstered by indications of decreasing inflation across the eurozone. January's Consumer Price Index (CPI) fell to 1.7%, significantly lower than the European Central Bank's (ECB) target, which may raise concerns among policymakers regarding the euro's swift appreciation and might increase the probability of resuming rate cuts that were paused in June. In the stock market, the technology and media sectors faced pressure as investors evaluated the effects of emerging AI-related tools on traditional business models. In corporate news, Novo Nordisk saw a sharp decline of 17% after presenting a less favorable forecast for its weight-loss drug. Credit Agricole experienced a drop of over 2% following an unexpected Q4 profit shortfall. Despite reporting a 56% surge in net profit, UBS shares fell by 5%, and Santander decreased by 3% after announcing its $12.2 billion acquisition of the US regional lender, Webster Financial.