European stocks steady ahead of key U.S. growth data

By Scott Kanowsky

Investing.com -- European shares held steady in early trading on Thursday, as traders look ahead to the release of crucial U.S. economic data and examine a new batch of corporate earnings.

At 03:40 ET (08:40 GMT), the pan-European STOXX 600 rose 0.60%, the DAX index in Germany traded 0.29% higher, the FTSE 100 in the U.K. gained 0.35%, and the CAC 40 in France increased by 0.71%.

Equities in the region received a strong handover from Asia, where stocks touched a fresh seven-month peak following the resumption of dealmaking in Hong Kong after a three-day holiday for Lunar New Year celebrations. The MSCI's broadest index of Asia-Pacific shares also rallied, adding on to a buoyant start to 2023 that has been fueled by hopes of a slowdown in U.S. Federal Reserve interest rate hikes and a recovery in the Chinese economy following the sudden relaxation of COVID-19 rules in the country.

Sentiment has been lifted as well by the Bank of Canada, which raised borrowing costs on Wednesday but said it will likely stay away from tightening monetary policy for the time being. Traders are now eyeing what that could mean for the Fed's future rate path.

"This all fits with the narrative of easing pricing pressures and a mild U.S. recession, which could actually see the Fed easing and a weaker dollar stimulating Rest of World growth," analysts at ING said in a note.

Attention will turn later in the day to the release of key preliminary fourth-quarter U.S. gross domestic product figures. Economists expect growth in the world's largest economy decelerated to 2.6% from 3.2% in the prior three-month period.

In Europe, a slew of major companies is reporting their latest results, with traders keen for any clues they may give about the outlook for the broader economy.

Shares in Diageo PLC (LON:DGE) slipped by more than 4% after the U.K.-based drinks maker's results pointed to a slowdown in operating profit in its North American unit.

Wizz Air Holdings PLC (LON:WIZZ) said it still expects to post a net loss in its 2023 earnings despite resilient travel demand, sending shares in the budget carrier lower.

Swedish truckmaker Volvo AB (ST:VOLVb) has posted lower-than-expected fourth-quarter income, as elevated input expenses and lingering supply chain disruptions partly offset a surge in net sales. Shares dipped by more than 3%.

But, at the other end of the spectrum, chipmaker STMicroelectronics NV (EPA:STM) jumped towards the top of the STOXX 600 after it reported better-than-anticipated fourth-quarter sales despite macroeconomic headwinds.

Elsewhere, hopes for a solid rebound in Chinese demand, as well as weakness in the dollar, were in focus in energy markets. By 03:40 ET, U.S. crude futures were 0.10% higher at $80.23 a barrel, while the Brent contract slipped by 0.09% to $86.04 per barrel.

Additionally, gold futures edged up 0.12% to $1,944.95/oz, while EUR/USD was largely unchanged at 1.0920.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: