European stocks stabilize ahead of Powell’s testimony

European stocks stabilized in early trading on Wednesday, before the release of key economic data for the euro zone and Federal Reserve Chairman Jerome Powell’s testimony before Congress, while positive gains offset the index’s losses.

According to the European STOXX 600 index, it settled at 0809 GMT.

The basic resources index rose 0.5%, supported by gold prices, which reached a record peak in the previous session, with increasing expectations of a cut in US interest rates by mid-year.

Investors are awaiting January retail sales data in the euro zone due at 1000 GMT and Powell’s testimony before Congress later on Wednesday, which may give clues on the path to lower interest rates.

In corporate updates, Symrise beat core earnings estimates in 2023 when the German flavor and fragrance maker implemented a cost management program, sending its stock up five percent. Chemicals sector stocks led the sectors’ gains, rising 0.8%.

DHL Group shares fell 4% after the giant German logistics company expected that its operating profits for the year 2024 would exceed the numbers before the Corona virus pandemic, but expectations did not live up to the level agreed upon by market traders in light of the weakness of global trade.