European stocks jump supported by strong earnings

European stocks rose on Thursday after a group of better-than-expected corporate earnings results, as well as gross domestic product data in Britain, while sentiment was supported by statements by European Central Bank President Christine Lagarde regarding the slowdown in inflation in the euro zone.

According to Reuters, by 0815 GMT, the STOXX 600 index of European stocks rose 0.6%, hovering at the highest level in two years.

The British Financial Times 100 index also rose 0.6% as the British economy enters a recession in the second half of 2023, which reinforces bets that the Bank of England will take steps to ease its monetary policy.

Investors drew positive conclusions after Lagarde said that recent economic data from the euro zone indicated that inflation was heading back to the target level as expected.

Renault shares rose 4.5% after the French automaker announced a net profit slightly lower than expected for 2023, but it achieved gains and profit margins and provided more money to investors through a huge increase in its cash dividends.

Embracer’s shares fell 12.7%, ranking at the bottom of the STOXX 600 index, after the Swedish toy maker announced lower-than-expected operating profits in the period between October and December, but maintained its expectations for the entire year.

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