European stocks rise on generally upbeat earnings; PMI data due
Investing.com — European stock markets rose Wednesday, as investors digested a deluge of corporate earnings ahead of the release of the latest regional business activity data.
At 03:05 ET (08:05 GMT), the DAX index in Germany traded 0.9% higher, the CAC 40 in France traded up 0.3% and the FTSE 100 in the U.K. rose 0.6%.
European equities have started the day with a positive slant but investors are eyeing manufacturing PMI data from the eurozone that will paint a clearer picture of the economy ahead of the region's central bank meeting on Thursday.
The European Central Bank is widely expected to keep rates steady this month, especially after eurozone CPI climbed to 2.9% in December from 2.4% the prior month, but the weak nature of growth in the region has investors expecting the central bank to start cutting interest rates in the summer.
The PMI data is likely to confirm that the important manufacturing sector remains in contraction territory in January.
Germany's Ifo institute downgraded its 2024 economic growth forecast on Wednesday, and now expects Europe's largest economy to grow by 0.7% this year instead of 0.9% previously forecast in mid-December.
Meanwhile, the earnings season has well and truly begun, with the semiconductor equipment manufacturer ASML (AS:ASML) taking a starring role, reporting fourth-quarter earnings that beat expectations and its best-ever quarterly orders, prompting its shares to rise over 6%.
However, the Dutch company kept a cautious outlook for 2024 as it faces new restrictions on exports to China.
Barry Callebaut (SIX:BARN), the world’s biggest chocolate maker, said on Wednesday that its sales volumes rose slightly in the three months to the end of November despite the challenging market
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