European Stocks Hit Record High on Upbeat Earnings, Await U.S. Inflation Data

Record High for European Stocks
Europe’s benchmark index surged to a record high on Wednesday, propelled by optimistic earnings reports in the industrial and healthcare sectors. The pan-European STOXX 600 climbed 0.4%, building on its previous record close.

Earnings Boost
Shares of credit data firm Experian soared 7.8% after announcing an optimistic annual organic revenue growth forecast. Similarly, Poland’s InPost saw a 5% increase following strong first-quarter core earnings, positioning both companies as top gainers in the industrial goods and services index.

Merck KGaA’s 4.5% rise, driven by better-than-expected adjusted earnings, bolstered the healthcare index, adding to the overall positive sentiment in European markets.

Mixed Performances
However, not all companies experienced gains. Finland’s Neste witnessed a significant 13.3% decline, attributing to the bottom of the STOXX 600, after revising its 2024 margin outlook for renewable products. German conglomerate Thyssenkrupp also faced challenges, dropping nearly 7% after revising down its annual sales and net profit forecasts.

Focus on U.S. Inflation Data
Investor attention remains fixated on U.S. consumer prices inflation data following Federal Reserve Chair Jerome Powell’s remarks regarding easing inflation concerns. Powell’s confidence contrasted with the hotter-than-expected producer prices reading in April, underscoring the importance of upcoming inflation data in shaping market sentiment and monetary policy expectations.