European stocks close higher amid strong earnings; investors await U.S. inflation data
The pan-European Stoxx 600 provisionally closed up by 1.7%, with autos surging 4% to lead the gains as all sectors and major bourses ended in positive territory.
Earnings were a key driver of individual share price action in Europe on Wednesday. Danish mineral wool manufacturer Rockwool International soared nearly 20% to lead the Stoxx 600 after its fourth-quarter report, while Dutch payment company Adyen jumped 11.5% after strong second-half results.
Global investors are awaiting inflation data out Thursday, with the U.S. Labor Department set to release January’s consumer price index figures.
The inflation data is expected to show that prices rose 0.4% in January, for a 7.2% gain from one year ago, which would be the highest in almost 40 years. The reading follows a stronger-than-expected January jobs report, which has led to speculation that the Federal Reserve could be more aggressive when it comes to hiking rates.
Bank of America said Monday that the Fed could implement seven quarter-percentage-point rate hikes this year.
Shares in Asia-Pacific closed higher overnight, with stocks in Hong Kong leading gains regionally.
On Wall Street, U.S. stocks rose Wednesday as investors monitored another round of corporate earnings.
