European markets close higher despite hot U.S. inflation data; Stoxx 600 up 1.6%

European markets close higher despite hot U.S. inflation data; Stoxx 600 up 1.6%


LONDON — European stocks closed higher Wednesday, with investors largely shrugging off hotter-than-expected inflation data out of the U.S.

The pan-European Stoxx 600 provisionally closed up 1.6%, with autos jumping 3.6% to lead gains as all sectors traded in positive territory except health care, which fell 1.2%.

The gains in Europe come after some choppy trading sessions in the region, and in markets further afield. European stocks climbed on Tuesday as global markets rebounded from a broad sell-off in recent days, prompted mainly by concerns over inflation and rising interest rates — and the potential for a global recession.

On Wall Street, U.S. stocks mostly rose Wednesday despite April’s consumer price index showing an 8.3% jump in prices, higher than the 8.1% increase expected by economists polled by Dow Jones. The price surge remained near the 40-year high pace of 8.5% seen in March.

Europe, we think, is in the center of the storm. We think the gas disruptions are likely to worsen.

Salman Ahmed

Global Head of Macro and Strategic Asset Allocation, Fidelity International

Recent market volatility has been driven by investor concerns over rising interest rates and question marks over how aggressively the Federal Reserve will act to curb rising inflation. In addition, investors continue to monitor the ongoing conflict in Ukraine and lockdowns in China.

European natural gas prices jumped on Wednesday after Ukraine’s state-owned grid operator suspended Russian gas flows through a key entry point.

Gas TSO of Ukraine on Tuesday announced force majeure on its Sokhranivka gas metering station and Novopskov border compressor station, both of which are situated in Russian-occupied territory in eastern Ukraine and account for almost a third of gas flows from Russia to Europe.

Stock picks and investing trends from CNBC Pro:

Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International, told CNBC on Wednesday that his team were underweight on stocks across the board, but favored the U.S. over Europe.

“Europe, we think, is in the center of the storm. We think the gas disruptions are likely to worsen,” he added.

Overnight, shares in Asia-Pacific were mixed as investors reacted to the release of higher-than-expected Chinese inflation data for April.

In Europe, German inflation in April rose to an annual 7.4%, its highest print since 1981.

Earnings from a wide range of companies were released before the bell, including Alstom, Commerzbank, Continental, E.On, Siemens Energy, Thyssenkrupp and Tui.

Shares of British home emergency repairs firm HomeServe bounced more than 13% after Bloomberg reported that Canada’s Brookfield Asset Management was nearing a takeover of the company.

German engineering and steel conglomerate Thyssenkrupp added 11% after beating earnings expectations.

Swedish Match shares climbed 9%, building on Tuesday’s surge after the tobacco company agreed a $16 billion sale to U.S. giant Philip Morris International.

German biotech firm Evotec dropped more than 10% after its first-quarter results.

Shares of German drugmaker Bayer fell 6% after U.S. President Joe Biden’s administration asked the U.S. Supreme Court not to consider the company’s appeal to dismiss claims from customers alleging that its Roundup weedkiller causes cancer.



Source

The number of ‘tariff’ mentions soar past ‘AI’ on earnings calls as Trump’s trade fight alters outlook
World

The number of ‘tariff’ mentions soar past ‘AI’ on earnings calls as Trump’s trade fight alters outlook

Move over artificial intelligence. There’s a new hot topic on corporate earnings calls in 2025: tariffs. The word “tariffs” has come up on more than 350 earnings calls of S & P 500 -listed companies reporting first quarter results, according to a CNBC analysis of call transcripts compiled by AlphaSense. By contrast, the term “AI” […]

Read More
First Chinese freight ship goods hit with Trump’s 145%-plus tariffs arriving at U.S. ports
World

First Chinese freight ship goods hit with Trump’s 145%-plus tariffs arriving at U.S. ports

Container ships sit docked at the Port of Los Angeles on May 06, 2025 in San Pedro, California. Justin Sullivan | Getty Images News | Getty Images The first shipping containers carrying Chinese products that are subject to President Donald Trump’s 145% tariffs have begun arriving in U.S. ports. Seven ships carrying upward of 12,000 […]

Read More
This consumer products stock is rushing to leave China and Wall Street is betting it can pull it off
World

This consumer products stock is rushing to leave China and Wall Street is betting it can pull it off

Wall Street is optimistic SharkNinja will be able to move its sourcing completely out of China. The company, which manufactures appliances such as vacuums and the Ninja Creami ice cream maker, rallied nearly 13% on Thursday following a first-quarter earnings beat. SharkNinja raised its guidance for its fiscal-year earnings, revenue growth and adjusted EBITDA estimates. […]

Read More