European Stocks Close Higher On Positive Reaction To Eurozone Inflation Data

European stocks closed broadly higher on Friday as data showed eurozone inflation fell in February, albeit less than expected. Optimism about the Federal Reserve and the European Central Bank cutting their interest rates in June helped underpin sentiment.

Flash data from Eurostat showed Eurozone inflation softened for the second straight month in February. The harmonized index of consumer prices rose 2.6% annually after rising 2.8% in January. Prices were forecast to climb 2.5%.

Core inflation that excludes energy, food, alcohol and tobacco eased to 3.1% from 3.3% a month ago, the data showed. However, this was above economists’ forecast of 2.9%. On a monthly basis, the HICP gained 0.6% in February.

The pan European Stoxx 600 climbed 0.6%. The U.K.’s FTSE 100 gained 0.69%, Germany’s DAX advanced 0.32% and France’s CAC 40 edged up 0.09%. Switzerland’s SMI ended 0.48% up.

Among other markets in Europe, Austria, Belgium, Denmark, Iceland, Netherlands, Norway, Portugal and Spain ended with sharp to moderate gains.

Poland, Russia, Sweden and Finland posted modest gains. Greece edged up marginally, while Turkiye ended weak.

In the UK market, Pearson rallied 5.5%. Standard Chartered, Anglo American Plc and Endeavour gained more than 4%.

Barclays Group, Natwest Group, Airtel Africa, Reckitt Benckiser, Croda International, Segro, Barratt Developments and Beazley gained 2.3 to 3.2%.

BP, Howden Joinery, Vodafone, Fresnillo, Glencore, Rolls-Royce Holdings, Talyor Wimpey, Lloyds Banking, 3i, Royal Dutch Shell, Land Securities and DS Smith advanced 1.5 to 2.2%.

ITV surged 14.3%. The media firm has sold its entire 50% interest in digital subscription streaming service BritBox International to BBC Studios, ITV’s joint venture partner, for 255 million pounds, to be paid in cash.

Ocado Group dropped more than 6%. Hikma Pharmaceuticals, Melrose Industries, Kingfisher, IMI, Relx, Whitbread and Bunzl ended lower by 1.2 to 2%.

In the German market, Daimler Truck Holding zoomed nearly 18% after…