European stocks rebounded Wednesday after four days of declines as Ukraine accepted a ceasefire proposal brokered by the US and traders looked ahead to key American inflation data.
The Stoxx Europe 600 Index was 0.8% higher by 9:58 a.m. in London, with banks among sectors leading the gains, while defense stocks declined after the US-Ukrainian accord. Retailers were the worst-performing industry group, trading at the lowest level since August, dragged down by Zara owner Inditex SA, which slumped as much as 8.9% after reporting slowing sales.
Roche Holding AG and Zealand Pharma A/S rose after the drugmakers teamed up to collaborate on development and commercialization of Zealand’s most promising weight-loss drug. Puma SE plummeted the most on record as it forecast another year of slow growth.
Portuguese stocks underperformed European indexes after the country’s parliament toppled Prime Minister Luis Montenegro’s center-right minority government in a confidence vote that may lead to a third election in just over three years.
Positive sentiment over Ukraine’s acceptance of a US proposal for a 30-day truce with Russia outweighed news of European Union countermeasures against American metals tariffs. Contributing to the brighter mood were comments from President Donald Trump, who sought to reassure about the outlook for the US economy and said he doesn’t see a recession.
European shares have faltered recently after a strong start to the year as investors became concerned about the growth outlook. Traders will later focus on the US inflation report for February.
“The high volatility in the markets will continue to lead to stronger intraday movements,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM. “The dynamics of political and economic developments make decisions difficult for investors.”
Among other individual movers, Porsche AG dropped as the German manufacturer lowered another profitability goal after its earnings slumped due to tumbling sales in China.
SECTORS IN FOCUS
Shipping stocks could be in focus Wednesday after the Houthi militant group in Yemen said it would resume attacks on Israeli ships for the first time in about two months after demanding the country ended a ban on aid entering Gaza.
Keep an eye on Adidas and European sportswear retailers today after German outfit Puma forecast slow growth in 2025 due to global trade tariffs, currency volatility, and geopolitical tensions.
Keep an eye on Portuguese stocks after the country’s parliament toppled Prime Minister Luis Montenegro’s center-right minority government in a confidence vote, likely leading the country to its third early election in just over three years.
For more on equity markets:
Markets Need a Benign Inflation Print for Relief: Taking Stock
M&A Watch Europe: Sondrio, BPER, Delivery Hero, Rosebank, Wendel
Roko’s Strong Debut Paves Way for Nordic IPO Spurt: ECM Watch
US Stock Futures Unchanged; LoanDepot Falls
Debenhams Back in Fashion: The London Rush
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