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European markets close higher; FTSE hits three-month high on inflation data

Holly Ellyatt

This is CNBC's live blog covering European markets.

LONDON — European markets closed higher Wednesday as investors digested fresh inflation data.

The pan-European Stoxx 600 turned green in afternoon trade following a mixed morning session, ending with a gain of 0.28%.

European markets


The majority of sectors moved into positive territory, with the telecoms sector leading gains, up 1.16%. Technology stocks, meanwhile, moved lower, down 0.3%.

U.K. inflation slowed more sharply than expected in November to 3.9%, down from 4.6% in October, official data showed Wednesday, adding pressure on the Bank of England to cut rates in 2024.

The FTSE 100 jumped 1% on the news, hitting a three-month high.

Last week, the Bank of England kept its main interest rate unchanged at 5.25% and said monetary policy is "likely to need to be restrictive for an extended period of time."

Asia markets rose Wednesday, with Japan stocks extending gains for another session after the country's central bank left its ultra-loose monetary policy unchanged at its final meeting this year.

U.S. stocks were lower, as the strong rally to end 2023 lost some steam.

U.S. stocks open lower Wednesday

The major averages opened lower Wednesday.

The Dow Jones Industrial Average lost 76 points, or 0.2%. The S&P 500 fell 0.2%, while the Nasdaq Composite shed 0.1%.

— Sarah Min

Stocks on the move: Argenx down 26%, Telecom Italia up 6%

Dutch biotech company Argenx fell to the bottom of the Stoxx 600 Wednesday, plunging 26%, after it said late-stage trial results from one of its immunotherapy drugs failed to meet its goals.

Telecom Italia, meanwhile, climbed 5.8%, recovering recent loses after Vivendi filed a complaint against the company over the sale of its fixed-line network, NetCo.

— Karen Gilchrist

UK inflation data 'good news' for rate cuts

UK inflation data marks 'good news' for BOE rate cut, economist says
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UK inflation data marks 'good news' for BOE rate cut, economist says
Squawk Box Europe

The Bank of England could be poised to cut interest rates in August 2024, as core inflation shows signs of easing, Janet Henry, global chief economist at HSBC, told CNBC.

New data showed U.K. inflation fell more sharply than expected in November, spelling "good news" for the central bank's plans to reach its 2% target, Henry said.

— Karen Gilchrist

UK's FTSE 100 hits three-month high on inflation data

U.K. stocks jumped in early deals after new data showed inflation fell to 3.9% in November.

The FTSE rose 1.3% at the market open, hitting its highest level since Sept. 21.

The more domestically focused FTSE 250 midcap index also added 1.1%. Meanwhile, sterling fell 0.6%.

—Karen Gilchrist

UK inflation dips to 3.9%

Christmas lights along Regent Street in London, UK, on Monday, Dec. 18, 2023. The Office for National Statistics are due to release the latest UK retail sales figures on Friday. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
Bloomberg | Getty Images

U.K. inflation fell more sharply than expected in November, dipping to 3.9% from 4.6% in October, official data showed Wednesday.

The year-on-year rise in the consumer price index was the lowest since September 2021 and well below the 4.4% expected by economists, adding pressure on the Bank of England to cut rates in 2024.

Last week, the central bank kept its main interest rate unchanged at 5.25% and said monetary policy is "likely to need to be restrictive for an extended period of time."

— Karen Gilchrist

European markets open higher

European markets opened higher Wednesday.

The pan-European Stoxx 600 rose 0.5% in early deals, with almost all sectors trading in positive territory. Telecom stocks led gains, rising 0.9%, while tech stocks sank marginally below the flatline.

— Karen Gilchrist

CNBC Pro: Want to play higher oil prices? Strategist names a favorite stock — and analysts give it 33% upside

It hasn't been a good year for energy stocks — the only sector left out of November's stock market rally.

And its outlook for 2024 looks similarly underwhelming: the International Energy Agency expects the slowdown to continue next year.

But one portfolio specialist is bullish on the sector's long-term prospects.

"We've been more constructive on energy than we were in the last year," Rahul Ghosh, equity portfolio specialist at investment firm T. Rowe Price told CNBC Pro, naming one under-the-radar stock to play the theme.

Pro

— Amala Balakrishner

European markets: Here are the opening calls

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 22 points higher at 8,442, Germany's DAX up 26 points at 18,896, France's CAC 7 points higher at 8,244 and Italy's FTSE MIB up 64 points at 35,091, according to data from IG.

Earnings are due from Swiss Re, Zurich Insurance, Siemens, Deutsche Telekom, BT and EasyJet, among others. There are no major data releases.

— Holly Ellyatt