- The pan-European was up 0.5% by 0804 GMT.
- Energy was the leading sector gainer with a rise of 1.3%.
- China’s services activity expanded at its fastest rate in five months, boosting sentiment.
- British clothing retailer Next topped the STOXX 600 with a 5% increase after raising its profit forecast for the year to end-January 2024.
- Evotec slumped 16% following the sudden departure of its long-term CEO.
- Investors are on the lookout for euro zone PMI and Germany’s consumer inflation readings.
- French December consumer prices rose in line with expectations.
The pan-European was up by 0.5% at 0804 GMT, rebounding from a three-week low recorded in the previous session.
The energy sector emerged as the leading gainer, showing an increase of 1.3%, closely followed by a 0.8% uplift in the healthcare sector.
Impact of China’s Services Activity
The investor sentiment received a boost following data indicating the quickest expansion of China’s services activity in five months.
Next, a British clothing retailer, witnessed a 5% surge and emerged as the leader of the STOXX 600 after it raised its profit forecast for the year ending January 2024. Conversely, Evotec, a German biotechnology firm, saw a 16% decline following the unexpected exit of its long-serving CEO.
Investors are anxiously awaiting the release of the euro zone PMI and consumer inflation readings from Germany, particularly after the minutes from the U.S. Federal Reserve’s December policy meeting indicated a strengthening belief that inflation is manageable. Concerns regarding the economic risks posed by a stringent monetary policy are mounting.
French Inflation Data
In related news, the latest data revealed that French consumer prices for December rose as anticipated.
The release of the PMI and inflation data, along with the evolving market sentiments, can significantly influence trading strategies and asset selection in the forex market.