European Stocks Close Higher As Investors Digest Economic Data, U.K.’s Spring Budget

European stocks closed higher on Wednesday with investors assessing U.K.’s spring budget, and Federal Reserve Chair Jerome Powell’s congressional testimony.

Markets also digested a slew of regional economic data, and awaited the European Central Bank’s monetary policy announcement, due on Thursday.

British Finance Minister Jeremy Hunt announced plans for permanent tax cuts due to slowing inflation. The Office for Budget Responsibility (OBR) predicts inflation to dip below the Bank of England’s target in the coming months, and has revised upwards the nation’s growth forecast.

The pan European Stoxx 600 gained 0.39%. The U.K.’s FTSE 100 advanced 0.43%, Germany’s DAX edged up 0.1% and France’s CAC 40 climbed 0.28%. Switzerland’s SMI ended 0.72% up.

Among other markets in Europe, Austria, Belgium, Greece, Netherlands, Poland, Portugal, Russia, Spain and Sweden ended higher.

Denmark, Iceland and Turkiye closed weak, while Norway and Finland ended flat.

In the UK market, Convatec Group gained more than 5%. Anglo American Plc, Weir Holdings, Smith & Nephew, Endeavour Mining, LSE, Experian, Tesco, BP, Centrica, B&M European Value Retail, Royal Dutch Shell and Flutter Entertainment gained 1.5 to 3.4%.

Rentokil Initial, Lloyds Banking, Scottish Mortgage, Kingfisher, Rio Tinto, Land Securities, RS Group, IMI and Halma advanced 1 to 1.4%.

Fresnillo tumbled about 4%. Hikma Pharmaceuticals, Smurfit Kappa Group, Ocado Group, Reckitt Benckiser, Diageo, Coca-Cola, Standard Chartered, Antofagasta and Admiral lost 1 to 2.5%.

Legal & General ended more than 1% down after posting flat operating profit for 2023.

In the German market, Symrise rallied more than 6%. The maker of flavors and fragrances gained after its 2023 core profit beat estimates.

Zalando, Bayer and BASF gained 2.7 to 3.4%. BASF surged after the company said it is changing the name of two dispersions plants in China.

Infineon, Sartorius, Siemens Energy and SAP also ended notably higher.

Deutsche Post dropped more than 6% after a…