Investing.com – European stock markets rose on Wednesday and were boosted by better-than-expected UK economic growth data, although moves were contained before key US inflation data.
At 9:40 in Germany it was up 0.1%, in France it was up 0.1%, while in the UK the FTSE 100 was up 0.6%.
Official data showed earlier on Wednesday that the British economy expanded more than expected, up 2.1% in March from February, while shrinking 1.5% in the first three months of 2021, when the country was under the third lockdown.
The Bank of England said last week that it expects the world’s fifth largest economy to recover quickly from the lifting of restrictions linked to the Coronavirus and to grow 7.25% throughout 2021.
While this is good news, global stock markets fear that this rally will lead to higher inflation, prompting central banks, and in particular the US Federal Reserve, to tighten their very loose monetary policy sooner than previously assumed.
So investors will closely follow the US CPI for April 13:30, which is expected to rise 0.2% from the previous month, up 3.6% from last year.
While the annual reading will be affected by the fundamental effects of last year’s epidemic-induced drop in energy prices, this jump will be the largest since September 2011.
In Europe, Commerzbank (DE 🙂 shares rose 6.9% after the German bank posted first-quarter earnings above expectations and Bayer (OTC 🙂 shares rose 3.2% after the German pharmaceutical giant announced an increase in net profits and continued outlook for this year. .
Shares of Ahold Delhaize (AS 🙂 rose 3.1% after the supermarket operator posted better-than-expected sales in the first quarter thanks to strong online performance and UniCredit (MI 🙂 shares rose 0.8% after new CEO Andrea Orcel reorganized. The management structure of the Italian Banking Group.
On the other hand, shares of Tui (DE 🙂 slid 1.5% after the world’s largest holiday maker said it had a total of 2.6 million reservations for this summer, 69% lower than this time of year in 2019.