European stocks rise after UK economy grows; Burberry issues profit warning
Investing.com — European stock markets climbed higher Friday, boosted by U.K. economic growth as investors await more U.S. inflation data and big bank earnings.
At 03:10 ET (08:10 GMT), the DAX index in Germany traded 0.9% higher, the CAC 40 in France traded up 0.8% and the FTSE 100 in the U.K. rose 0.9%.
Data released earlier Friday showed that Britain's economy grew slightly more strongly than expected in November, with the country’s gross domestic product rising 0.3% in November, beating forecasts for a 0.2% expansion.
Industrial and manufacturing production both expanded in November, after sharp retreats the prior month, raising hope that the country’s economy, one of the weakest in Europe, is now on track for growth.
«The longer-term picture remains one of an economy that has shown little growth over the last year,» ONS chief economist Grant Fitzner said.
«GDP bounced back in the month of November, however, led by services with retail, car leasing and computer games companies all having a buoyant month.»
Elsewhere in Europe, French CPI was confirmed rising to 3.7% in December on an annual basis, from 3.5% the prior month, while Spanish CPI came in at 3.1%, a small drop from 3.2%.
The main inflation focus Friday, however, will be on U.S. producer prices, especially after the country’s consumer prices came in a little hotter than expected on Thursday.
U.S. PPI is expected to rise 0.1% on the month in December, an annual rise of 1.3%, while the ‘core’ figure, which excludes volatile food and energy prices, is seen falling to 1.9% on an annual basis.
In the corporate sector, Burberry (LON:BRBY) stock slumped over 8% after the British luxury fashion brand warned on its full year profit outlook for the second time in
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