Stock markets mostly higher before US inflation data

LONDON: European stock markets rebounded on Wednesday, as traders digested solid German growth data and awaited key US inflation figures.

Around 1000 GMT, London’s benchmark FTSE 100 index was up 0.6 percent compared with the close on Tuesday.

In the eurozone, Frankfurt’s DAX 30 and the Paris CAC 40 indices each gained 0.6 percent, after falling by a similar amount the previous session.

“Bourses across Europe have started the day in positive territory, taking the lead from a positive close (on Tuesday) in the US,” said Fiona Cincotta, market analyst at City Index trading group.

“An air of calm returned to trading in the US session, as volatility eased and investors focused their attention on today’s retail sales and inflation data from the US.”

Earlier on Wednesday in Asia, Hong Kong’s main stocks index closed up more than two percent, extending a rebound from the sell-off last week.

Tokyo, however, fell to another four-month low as the yen strengthened against the dollar, at one point hitting a 15-month high.

Investors were also unimpressed by data showing Japan’s economy grew at a weaker-than-expected rate in the last quarter of 2017.

In Europe, the continent’s biggest economy, Germany, expanded by 0.6 percent in the final quarter of last year, official data showed.

Investors were meanwhile awaiting US inflation numbers for clues on the pace of interest rate rises in the world’s biggest economy.

Global stock markets have tumbled in recent weeks, wiping out previous strong gains, largely on concerns that high US inflation will force the Federal Reserve to tighten the cost of borrowing faster than anticipated this year.

“Given the recent stock market slump, risk aversion has grown, which prompted safe-haven buying of the yen,” Shinichiro Kadota, foreign exchange strategist at Barclays Securities, told AFP.

The dollar hit 106.84 yen in Asian trading — the lowest level since November 2016 — before recovering back above 107 yen.

In corporate activity, shares in pan-European TV giant Sky rallied 3.3 percent to 1,096 pence after the satellite broadcaster beat rival BT to show the bulk of live Premier League football matches in Britain over the next few years.

BT shares rose 1.15 percent to 228.45 pence.

– Key figures around 1000 GMT –

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London – FTSE 100: UP 0.6 percent at 7,213.73 points

Frankfurt – DAX 30: UP 0.6 percent at 12,274.3

Paris – CAC 40: UP 0.6 percent at 5,137.20

EURO STOXX 50: UP 0.6 percent at 3,359.93

Tokyo – Nikkei 225: DOWN 0.4 percent at 21,154.17 (close)

Hong Kong – Hang Seng: UP 2.3 percent at 30,515.60 (close)

Shanghai – Composite: UP 0.5 percent at 3,199.16 (close)

New York – DOW: UP 0.2 percent at 24,640.45 (close)

Euro/dollar: UP at $1.2354 from $1.2350 at 2130 GMT