European stocks ride, US inflation data in focus

European stocks opened slightly higher on Thursday, led by gains in materials stocks as investors prepared for key US inflation data to gauge the prospects for global interest rate cuts.

According to Reuters, the European STOXX 600 index rose 0.2% by 0820 GMT, while the German DAX index recorded a new record high, rising 0.2%.

Investors will focus on the Federal Reserve’s preferred measure of consumer prices, which is personal consumption expenditures data for January, along with the consumer price index reading from Germany, ahead of the announcement of inflation data in the euro zone on Friday.

UK company CRH expected core profits to grow in 2024 after exceeding its 2023 profit target. The building materials producer topped gains on the STOXX 600 index with a 5.6% jump.

Beiersdorf shares fell by 3.8% after the Nivea cosmetics manufacturer expected a slowdown in organic sales growth in 2024, after organic sales increased by 10.8% last year.

Shares of German chip equipment maker Extron fell 17.2% to the bottom of the STOXX 600 index, despite expectations of further revenue growth in 2024.

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