Berlin: European stocks rebounded yesterday after four days of declines as Ukraine accepted a ceasefire proposal brokered by the US, while data showed American inflation cooled more than expected.
The Stoxx Europe 600 Index rose 1.3% by 1 p.m. in London, with banks among sectors leading the advance.
The index extended gains as figures showed US consumer prices rose at the slowest pace in four months in February, offering some reprieve after months of stalling inflation progress.
S&P 500 futures also jumped following the data.
The report is being “welcomed by investors, who have recently been faced with cautious signals from the Fed around interest rate moves,” said Richard Flynn, managing director at Charles Schwab UK.
Still, he warned the focus could return to the economy amid worries of a recession.
“Inflation concerns have been front and centre, however, growth has become the bigger worry for market watchers, so it may be this that prompts the next change in rates when the time comes.”
Defense stocks declined after the US-Ukrainian accord.
Retailers were the worst-performing industry group, trading at the lowest intraday level since August, as Zara owner Inditex SA slumped as much as 8.9% after reporting slowing sales.
Roche Holding AG and Zealand Pharma A/S rose after the drugmakers teamed up to collaborate on development and commercialization of Zealand’s most promising weight-loss drug.
Puma SE plummeted the most on record as it forecast another year of slow growth.
Portuguese stocks underperformed European indexes after the country’s parliament toppled Prime Minister Luis Montenegro’s center-right minority government in a confidence vote that may lead to a third election in just over three years.
European shares have faltered recently after a strong start to the year as investors became concerned about the growth outlook.
