European Stocks Rise Amid Expectations of Interest Rate Cuts

European stocks rose on Wednesday amid expectations of interest rate cuts following data indicating a slowdown in inflation in Britain and Germany, while rising commodity prices boosted resource stocks. The Stoxx 600 index increased by 0.3% by 08:18 GMT, with the energy and telecommunications sectors being the biggest winners. Data showed a larger-than-expected decline in producer prices in Germany in November, and inflation in Britain fell last month significantly more than anticipated to the low level recorded for core inflation in September 2021, further reinforcing expectations for interest rate cuts. The German DAX index rose 0.2%, while the British FTSE 100 increased by 1.3%. Energy stocks climbed 1.1%, and basic resources stocks gained 0.4% due to rising prices of most commodities. Telefonica's shares jumped 6.3% as the Spanish government prepared to acquire about 10% of the telecom giant's shares. On the other hand, Deutsche Post's shares fell by 1.3% after its American counterpart FedEx cut its full-year revenue forecast and reported lower-than-expected quarterly profits.