European shares bounce back from three-week lows on banks, utilities boost
By Shashwat Chauhan and Ankika Biswas
(Reuters) -European shares recouped some losses on Thursday after hitting three-week lows in the previous session, with banks and utilities leading the charge as investors assessed the latest economic data across the continent.
The pan-European STOXX 600 ended 0.7% up after falling for two straight days and touching its lowest level since Dec. 13 on Wednesday.
Leading the rebound were banks, which added 1.7%, while utilities advanced 1.5%.
Healthcare continued its strong run, rising 1.4%, taking its tally of consecutive days of gains to five.
On the downside, retail dropped 0.8% as Britain's JD (NASDAQ:JD) Sports Fashion tumbled 23.0% after the sportswear retailer lowered its full-year profit forecast, sending shares of German sportswear makers Adidas (OTC:ADDYY) and Puma down 3.0% and 5.9%, respectively.
Technology fell 0.4%, logging its fifth straight day of declines.
On Thursday's data front, German inflation rose in line with expectations in December due to base effects, while French consumer prices also rose in December, matching expectations.
«It remains to be seen, though, if this trend will persist in light of the still relatively moderate weakening of the labour market,» said Stefan Schilbe, chief economist at HSBC Germany.
«With the labour market certainly not falling off a cliff — employment is still close to the all-time high — the inflation risks from wage increases in the upcoming wage rounds are not entirely negligible.»
A separate reading showed contraction in euro zone business activity continuing at the end of 2023.
Focus would now shift to a preliminary inflation estimate of the broader euro zone due on Friday.
Sentiment was also boosted by data showing China's
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