Euro Markets Hit New Highs For a 3rd Day

Published on: Mar 14, 2024|2 min read

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London: 14 March 2024 (TraderMade): European markets edged slightly higher on Thursday morning, with investors keeping a close eye on upcoming US inflation data. The pan-European Stoxx 600 index rose 0.3%, led by gains in household goods, while miners fell.

FTSE 100 (UK100) was at 7785.6, CAC 40 (FRA40) was at 8205.5, and DAX 30 (GER30) was at 18063 when writing.

Key Takeaways

European markets nudged higher as investors awaited key US inflation data (producer price index - PPI) due before the US trading session began.
The PPI data is crucial for the US Federal Reserve's next policy meeting on March 19-20.
Encavis, a German renewable energy producer, surged 27% after a takeover offer from KKR for €17.50 per share.
The broader European markets are on track for their eighth consecutive week of gains.

Record Highs and Buoyant Corporate News

European stocks hit a new record high for the third day in a row, supported by positive corporate updates. Germany's DAX index also reached all-time highs for the third straight session.

Encavis Soars on Takeover Bid

Shares of Encavis skyrocketed after a consortium led by investment firm KKR offered to buy the company for €17.50 per share, a 54% premium on its closing price before deal talks were leaked.

Other Notable Moves

K+S shares climbed 7.3% after exceeding expectations for annual results and providing optimistic guidance.
Rheinmetall gained 3.5% as the war in Ukraine boosted defense spending expectations.
Lanxess dropped 8.2% due to a weak outlook for 2024.
Hapag-Lloyd fell 2.5% after reporting a significant decline in net profit for 2023 and cutting its dividend.

Looking Ahead

Investors are awaiting US PPI and retail sales data to gauge the US economy's health and the Fed's potential for a mid-year rate cut. The European Central Bank is also expected to begin raising rates from June.

Summary

European markets continued their upward trend, buoyed by record highs, positive corporate news, and a potential shift in central bank policies on both sides of the Atlantic. The upcoming US economic data will be a key factor for future market movements.