European stocks rose on Thursday, supported by gains in luxury-related stocks after LVMH posted strong first-quarter sell-off amid hopes of a break in the Federal Reserve’s rate-hiking cycle after weaker inflation data weaker than expected.
By 8:10 am ET, the pan-European STOXX 600 index was up 0.18% to 463.21 points, as traders ignored harsher inflation comments from European central bank officials.
Shares of LVMH, the world’s largest luxury goods company, rose 4.3% after posting a 17% rise in first-quarter sales that beat estimates. The performance was driven by the group’s activities in China, which showed a strong recovery.
“You’re likely to see some surprises like this this year, particularly with companies exposed to China’s middle class and consumer spending, which was obviously stifled last year due to lockdowns,” said Andrew Bell, managing director delegate of Witan Investment Trust.
France’s CAC 40 stock index led regional gains and hit record highs.
“France obviously benefits because it owns a sizable portion of these luxury goods and consumer-related stocks,” Bell said.
In LONDON, the Financial Times index advanced by 0.02%, to 7,826.07 points.
In FRANKFURT, the DAX index fell by 0.09% to 15,689.49 points.
In PARIS, the CAC-40 index gained 0.90%, to 7,463.57 points.
In MILAN, the Ftse/Mib index lost 0.11% to 27,598.38 points.
In MADRID, the Ibex-35 index recorded an increase of 0.01%, to 9,279.70 points.
In LISBON, the PSI20 index gained 0.30% to 6,167.30 points.
Source: Terra
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