The European Stoxx 600 index rose to its highest level in over a month on Wednesday, supported by a slowdown in inflation in major economies, which bolstered bets on the end of the monetary tightening policies by central banks. The index closed up by 0.4%, while the FTSE 100 index in the UK increased by 0.6%.
Following the release of a report indicating stability in inflation in the United States, new data showed that UK inflation slowed more than expected in October. Meanwhile, German wholesale prices experienced their largest decline in nearly three and a half years in October, reflecting a further easing of inflationary pressures in Europe's largest economy.
Sentiment was also boosted by data showing industrial production and retail sales in China, the world's largest consumer of metals, grew more than expected in October, along with reports of a new stimulus package to be introduced by authorities there.
Shares of interest-sensitive technology companies surged by 2.1%, while mining stocks gained 1.5% following an increase in metal prices. German semiconductor manufacturer Infineon saw its shares rise by 9.7% after reporting higher-than-expected revenues for 2023. Siemens Energy indicated it "may exit some markets and products related to its troubled wind turbine business," resulting in its shares rising by 8.8%.
The German DAX index increased by 0.9%, outperforming other regional markets. Shares of luxury goods companies exposed to China rose by more than 1%, with the sector climbing 1.0% to reach its highest level in nearly two months.
