European stocks higher; German factory orders slump, Tui looks at delisting
Investing.com — European stock markets traded higher Wednesday, buoyed by renewed confidence that the major central banks' tightening cycle has peaked.
At 03:05 ET (08:05 GMT), the DAX index in Germany traded 0.1% higher, the CAC 40 in France traded up 0.1% and the FTSE 100 in the U.K. rose 0.1%.
Economic data of late have pointed to a likely recession for the eurozone in the final quarter of the year, but this has boosted investors’ optimism that the European Central Bank has ended its prolonged run of interest rate hikes.
Data released Wednesday showed that German factory orders slumped 3.7% on the month in October, a sharp drop from the revised 0.7% gain the prior month.
European retail sales are due later in the session, and are expected to rise 0.2% on the month in October, an annual drop of 1.1% as consumers continue to struggle with the combination of high interest rates and prices.
ECB policy maker Isabel Schnabel, a known hawk, suggested earlier this week that further tightening is «rather unlikely», adding to the growing sense that the major central banks are done hiking.
A degree of dovishness has also emerged from comments from Fed officials, including from Fed Chair Jerome Powell at the end of last week, while the Bank of Canada is likely to add to that narrative by holding interest rates unchanged at its policy meeting later in the day.
In corporate news, Tui AG NA (ETR:TUI1n) stock rose over 6% after the travel giant said it expected a 25% rise in operating profit this year after 2023 earnings surged on the back of strong demand, while it also announced a potential move of its stock market listing from London to Frankfurt.
Oil prices stabilized Wednesday, but remained pinned near five-month lows as
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