Stocks in the European markets rose on Friday as the UK economy registered growth in November, while investors await the release of the US producer price index (PPI) and earnings reports from big banks in the country.
Germany’s DAX index was trading 0.92% higher, while France’s CAC 40 gained 1.15% and the UK’s FTSE 100 index increased 0.78%.
On the corporate front, shares in British luxury fashion brand Burberry Group plc lost over 8.00% after the company issued its second profit outlook warning in three months as demand for luxury products lost momentum.
Burberry’s stock last stood 7.31% lower.
Rivals, including LVMH Moet Hennessy Louis Vuitton and Kering SA, also saw weaker demand for high-end items in key markets, including the US, Europe, and China.
Still, the focus would be on US banking giants Bank of America (BofA) Corp., Citigroup Inc., and JPMorgan Chase & Co., which are set to publish their earnings later in the day.
UK GDP Bounces Back, US December PPI In Focus
European stocks on Friday found support from Britain’s gross domestic product (GDP) climbing 0.3% month-on-month (MoM) in November from October’s decline of 0.3%.
The latest reading also surpassed expectations of a 0.2% rise.
The country’s industrial and manufacturing output also recovered in November, increasing 0.3% and 0.4%, respectively, after seeing steep declines of 1.3% and 1.2% in the previous month.
The improvement signaled that the UK economy, one of the weakest in Europe, is now venturing into growth.
However, chief economist Grant Fitzner said Britain’s longer-term economic outlook remained one that showed a minor expansion over 2023.
Still, its GDP rebounded in November, as a surge in services with retail, car leasing, and PC game developers mainly contributed to the upturn.
In France, meanwhile, the consumer price index (CPI) rose to 3.7% year-over-year (YoY) in December from the 3.5% growth the month before.
On the other hand, Spain’s CPI slightly slipped to 3.1% last month from November’s reading of a 3.2% increase.
Investors are awaiting the US PPI data, which is expected to advance 0.1 MoM in December, a YoY rise of 1.3%. The country’s core PPI, which excludes volatile food and energy costs, is estimated to drop to 1.9% YoY.
