European shares rebound on weak UK inflation data

European shares rebound on weak UK inflation data

European stocks rebounded on Wednesday after the Bank of England raised expectations of imminent interest rate cuts following weaker-than-expected UK inflation.

The pan-European STOXX 600 index ended 0.50% higher at 485.24 points after falling 1% in the previous session.

London's Financial Times index rose after data showed domestic inflation in January beat forecasts for a repeat of the previous month's rate increase.

Stock markets around the world steadied after a sell-off after data showed stronger-than-expected US inflation on Tuesday, as the Federal Reserve pushed back expectations of a rate cut.

“Global stocks are in a 'buy the dip' mood, so when it looked like there was some limit to selling in US stocks and bonds, we saw a rally in European markets,” said Steve Sosnick, chief strategist at Interactive Brokers. .

Meanwhile, European Central Bank Vice President Luis de Guintos said more data was needed before the ECB could feel comfortable that record interest rates had done their job.

Among sectors, the aerospace and defense index rose 1.2% to hit a record high.

Tech stocks rebounded from the previous session's steep losses with a 1.0% gain, while miners fell 0.5% to hit their lowest level in nearly four months.

In London, the Financial Times index rose 0.75% to 7,568.40 points.

In FRANKFURT, the DAX index rose 0.38% to 16,945.48 points.

In PARIS, the CAC-40 index rose 0.68% to 7,677.35 points.

In MILAN, the Ftse/Mib index rose 0.63% to 31,329.38 points.

In MADRID, the Ibex-35 index fell 0.09% to 9,916.60 points.

In LISBON, the PSI20 index fell 0.55% to 6,100.10 points.

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