European Stocks Move Mostly Higher Amid Interest Rate Optimism

European stocks moved mostly higher during trading on Wednesday, with dovish comments from Federal Reserve Governor Christopher Waller on Tuesday raising optimism that the U.S. central bank is done raising interest rates.

Data showing a slowdown in German inflation also contributed to the positive mood in the markets.
The pan European STOXX 600 climbed by 0.5 percent to 459.10. The German DAX Index jumped by 1.1 percent and the French CAC 40 Index edged up by 0.2 percent, although the U.K.’s FTSE 100 Index bucked the uptrend and fell by 0.4 percent.

On the economic front, data published by the statistical office INSEE showed French payroll employment increased slightly in the third quarter, rising just 0.1%, or 36,700. The rate was 0.1% in the second quarter.

Nonetheless, payroll employment exceeded the previous year level by 0.8%. Private as well as public payroll employment gained 0.1% each in the third quarter.

German import prices continued to fall in October, but the large decreases primarily reflect higher base of comparison, Destatis reported today.

Import prices posted an annual fall of 13% in October after a 14.3% decrease in September. Prices have been falling since March.

“The large decreases are still primarily due to a base effect originating from the high price increases in 2022 as a result of the war in Ukraine,” Destatis said.

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