As uncertainty lingered over the economic outlook, a topic that will take center stage at the World Economic Forum in Davos this week, European markets cautiously rallied on Wednesday. By early afternoon, the pan-European Stoxx 600 index was up 0.4%. Core resources led the gains, up 1.6%, and food and beverage stocks fell 0.7%.
Meanwhile, the annual inflation rate in the UK decreased in December to 10.5%. It was slightly lower than analysts had anticipated. This marked the second month in a row that the rate fell. In November, it saw a drop from a 41-year high to 10.7%.
In other overnight trading, US stock futures were slightly higher on Wednesday morning. At the same time, Asia-Pacific stocks mostly traded higher despite the Bank of Japan’s announcement that it would not change its yield curve control policy. Following the release of the Dutch food delivery service’s second half earnings and a commitment to prioritize profitability over growth, shares of Eat Takeaway rose 10% by mid-afternoon on Wednesday.
Thanks to improving supply chain conditions, compatriot ASMI, a semiconductor company, also rose more than 10% after beating fourth-quarter profit expectations.
Following its full-year earnings report, Swedish private equity firm EQT fell 7% to the bottom of the Stoxx 600.
The annual inflation rate in the UK eased to 10.5%, slightly less than analysts had forecast. It was the second month in a row that the rate declined after falling from a 41-year high to 10.7% in November. According to the UK’s Office for National Statistics, the largest upward contributions that partially offset the change came from higher prices in restaurants and drinks and non-alcoholic food. In addition, the largest contributions to the decrease, partially offset, were transportation, clothing and footwear, and recreation and culture.
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