European stocks rise after British inflation data boosted sentiment

European stocks rose on Wednesday after weaker-than-expected inflation data in Britain supported hopes that the Bank of England would cut interest rates soon, while investors turned their eyes to more economic data from the euro zone later on Wednesday.

According to Reuters, by 0813 GMT, the European STOXX 600 index rose 0.1%, while the British main index increased 0.5% after British consumer price inflation rose at a slower pace than expected in January.

Investors will now shift their focus to euro zone GDP data due at 1000 GMT, which is expected to show the region’s economy grew 0.1% in the fourth quarter, unchanged from the same period a year earlier.

ABN Amro Bank shares were among the best performers, rising by about 6% after the Dutch bank announced net interest income in the fourth quarter that was slightly higher than expectations.

Coca-Cola shares rose 5.6%, as the Swiss-based company expected its annual profits to grow after announcing unprecedented profits in all of 2023.

ThyssenKrupp shares fell 4.8% after the company lowered its forecasts for annual sales and net profits, blaming the decline in demand and prices in the raw materials and steel sectors.

Heineken shares fell 5%, as the Dutch beer company expected operating profits to grow in single digits in 2024, due to geopolitical fluctuations and economic conditions.