European markets were higher on Thursday, following a record day for the U.K.’s FTSE 100 on Wednesday.
The pan-European Stoxx 600 index was up 0.52% in mid-morning, with most major stocks and sectors trading positively. Media stocks rose 1.6%, followed by telecoms, up 1.42%.
The FTSE 100 breached the 8,000-point barrier for the first time on Wednesday to close 0.56% higher, even as global markets saw a decline.
January inflation stood at 10.12%, the third consecutive monthly decline.
Across the Atlantic, U.S. inflation rose slightly more than expected on Tuesday, sending Asia-Pacific markets lower.
Germany’s Commerzbank reported a bigger-than-expected fourth-quarter profit, sending the bank’s share price up 8.4% in morning trade.
The bank also predicts that this year’s results will be “significantly higher” than those in 2022.
Net profit rose 12%, boosted by higher interest rates. The bank also posted a second consecutive profitable year as it underwent a major restructuring.
Commerzbank posted its biggest net profit in more than 10 years.
Shares in Centrica rose 6.5% in early trade after the British energy company said it would extend its share buyback program by 300 million pounds.
The company’s annual profit tripled due to high energy and gas production levels amid high commodity prices.
Centrica also owns a 21% stake in Britain’s nuclear fleet, which has boosted production and benefited from higher electricity prices.
The results mirror bumper oil earnings reported by companies such as B.P. and Shell.
The £300m buyback program comes on top of the £250m worth of acquisitions already announced. The acquisitions now represent about 10.5% of Centrica’s equity.
Stocks in emerging markets
Shares in emerging markets rose on Thursday after strong U.S. retail sales data. This eased concerns about an economic slowdown in the world’s biggest economy. Hong Kong’s Hang Seng index also snapped a four-day losing streak.
MSCI’s index of emerging markets increased 0.62%, matching Wall Street’s overnight gains, after stronger-than-expected retail sales data signaled that the U.S. economy was resilient.
The Hang Seng index rose 0.8% and closed higher after a slow start to the week. At the same time, other Chinese stocks lost early gains and closed lower.
So far, the Hang Seng is down 7.64% from its latest peak on Jan. 27, as geopolitical stress, fears of aggressive U.S. rate hikes, and concerns over China’s economy weighed on the tech-heavy index.
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- Source: https://www.financebrokerage.com/european-stocks-follow-ftse-100-hike/
