This is CNBC's live blog covering European markets.
European markets closed higher Thursday as the European Central Bank's updated inflation forecast put the 2024 rally back on track.
The pan-European Stoxx 600 provisionally closed 1.05% higher at 503.45 points after surpassing the key 500 level for the first time during the session.
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| .FTSE | FTSE 100 | 8,433.76 | +52.41 | +0.63% |
| .GDAXI | DAX | 18,772.85 | UNCH | UNCH |
| .FCHI | CAC 40 Index | 8,219.14 | UNCH | UNCH |
| .FTMIB | FTSE MIB | 34,657.35 | +318.03 | +0.93% |
| .IBEX | IBEX 35 Idx | 11,105.50 | UNCH | UNCH |
The European Central Bank held interest rates steady at a record 4%, as it revised its forecast for inflation in 2024 to 2.3% from 2.7%.
It also said euro zone growth would be weaker than previously expected this year, at 0.6%.
Markets, which had already zeroed in on rate cuts beginning in June, took the updated macro forecasts as a further sign for that month.
ECB President Christine Lagarde meanwhile said market pricing "seems to be converging better" with the ECB's own view.
Thursday's news "all but seals the deal that the bank will start easing policy at its June meeting, provided we don't see a blow up in both inflation and wages in the interim," Matthew Ryan, head of market strategy at Ebury, said. "This is now almost fully priced in by swap markets following today's announcement."
Elsewhere, Asia stocks rose after comments from U.S. Federal Reserve Chair Jerome Powell on Wednesday. He reiterated his stance that while the central bank could start cutting rates, it was "not immediately ready."
U.S. stocks were also higher in morning trade as investors digested the monetary policy outlook.
Europe's Stoxx 600 gained 1.05% Thursday, closing above the psychological level of 500 for the first time ever, as the European Central Bank's latest monetary policy meeting fueled bets on a June rate cut.
Technology stocks rallied 2.26% as health care gained 2.3%.
Germany's DAX and France's CAC 40 were both around 0.7% higher, while the U.K.'s FTSE 100 ended the session up 0.17%.
— Jenni Reid
The European Central Bank held interest rates steady Thursday and lowered its annual growth forecast.
The Bank now sees economic growth of 0.6% in 2024, down slightly from its prior forecast of 0.8%. Their inflation forecast for the year was brought to 2.3% from 2.7%.
Investors had been awaiting the March projections for an indication of when rate cuts may begin.
— Karen Gilchrist
Shares of Danish drugmaker Novo Nordisk rose 4.5% in morning trade after it said it was expanding its focus to include cardiovascular disease treatment after a late-stage trial showed its Ozempic weight-loss drug delayed progression of chronic kidney disease in diabetes patients.
New data released Thursday also showed the company's experimental Amycretin drug boosted weight loss by 13%, according to Reuters.
Shares of Eli Lilly fell 2% in pre-market trade as competition heats up between the two major players in the obesity drug market.
— Karen Gilchrist
Shares of Hugo Boss plunged 18%, before paring losses slightly Thursday, after warning that it may fail to meet its 2025 sales target amid weakening consumer demand.
The German high-end fashion brand was on course for its worst trading day since 2016, after it said it expects sales to grow more slowly in the coming year despite reaching 4.2 billion euros ($4.6 billion) in 2023 — an increase of 18% on the previous year.
Shares were trading 18% lower at 8:52 a.m. London time.
— Karen GIlchrist
Shares of financial services firm Virgin Money jumped 36% in early deals on news that it would be acquired by British bank Nationwide for £2.9 billion ($3.7 billion).
On the other end, French office services and call center company Teleperformance sank 17.7% after missing its full-year revenue target for 2023 and pointing to limited growth in the year ahead.
CEO Daniel Julien dismissed reports that artificial intelligence innovation posed a risk to the business. "AI is going to help you gather the data ... [but it] doesn't make the decisions," he told CNBC.
— Karen Gilchrist
External shocks, such as as geopolitical events or still restrictive monetary policy, could undermine growing confidence in the IPO market, investment firm Raymond James said Thursday.
"Exogenous shocks remain a real threat," Sunaina Sinha Haldea, global head of private capital advisory, told CNBC. She added that technical flows — or sudden outflows of investment from one market to another — also risk causing disruption even as money begins to return to the market.
— Karen Gilchrist
U.K. house prices increased for the fifth consecutive month in February, in a sign that momentum is returning to the lacklustre real estate market, new data showed Thursday.
The average U.K. house price rose by 0.4% in February, marking an increase of 1.7% year-on-year, according to Halifax House Price Index.
Halifax Mortgages director Kim Kinnaird said that the data suggests cautious confidence is returning to the market in anticipation of a reduction in interest rates later this year.
"These figures continue to suggest a relatively stable start to 2024 and align with other promising signs of increased housing activity, such as mortgage approvals," she said.
— Karen Gilchrist
India's economic prospects are shining bright, attracting global investors eager to capitalize on the country's immense growth potential.
The International Monetary Fund expects India's real gross domestic product (GDP) to expand by 6.5% in 2024.
However, tapping into these opportunities as a foreign investor is not as straightforward as buying shares listed on the Indian stock exchanges. Limits on foreign ownership, complex tax implications, and corporate governance concerns create barriers.
CNBC Pro subscribers can read more about how foreign investors can buy Indian stocks.
— Ganesh Rao
Many growth stocks are becoming expensive, prompting some investors to turn to value stocks.
"The S&P 500 at 5,075 with expected earnings growth of 10% for 2024 gives us $243 a share and puts us at 21X earnings - its pricey, plain, and simple," said Brian Szytel, senior managing director of The Bahnsen Group, in late February. The S&P 500 closed around 5,078 on Tuesday.
He said he wouldn't own the index at that level. "I would however, own parts of the market shift to more value-oriented names and believe that rotation that started in 2022 from growth to value will resume. This is a time to earn 'carry', income, and dividends," he said.
Those interested in value stocks can consider the following from CNBC Pro's screen of the Vanguard Value ETF. All have 20% or more upside and a buy rating of at least 50%, with the screen showing their current and 5-year average dividend yields.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets are expected to open higher Thursday.
The U.K.'s FTSE 100 index is expected to open 32 points higher at 8,365, Germany's DAX up 25 points at 18,510, France's CAC 7 points higher at 8,143 and Italy's FTSE MIB up 59 points at 33,908, according to data from IG.
Earnings are due from Ferrovial, Telefonica, EDP, Enel, Pirelli and Salvatore Ferragamo.
— Holly Ellyatt