Major European Markets Close Higher
(RTTNews) - European stocks closed higher on Thursday as the latest batch of economic data from the U.S. helped ease concerns about the outlook for Fed interest rates. Stocks also found support thanks to some bargain hunting after recent losses.
Revised data released by the Commerce Department on Thursday showed U.S. economic growth slowed by more than previously estimated in the first quarter of 2024. The report said gross domestic product climbed by 1.3% in the first quarter compared to the previously reported 1.6% jump.
First-time claims for U.S. unemployment benefits crept modestly higher in the week ended May 25th, rising to 219,000, an increase of 3,000 from the previous week's revised level of 216,000, data from the Labor Department showed. Economists had expected jobless claims to inch up to 218,000 from the 215,000 originally reported for the previous week.
The pan European Stoxx 600 ended up 0.59%. The U.K.'s FTSE 100 climbed 0.59%, Germany's DAX edged up 0.13% and France's CAC 40 ended higher by 0.55%, while Switzerland's SMI gained 0.65%.
Among other markets in Europe, Denmark, Finland, Norway, Portugal, Spain and Sweden closed higher.
Belgium, Greece, Iceland, Poland and Russia ended weak, while Austria, Netherlands and Turkiye closed flat.
In the UK market, Auto Trader Group soared nearly 13% after reporting full-year results ahead of expectations.
Ocado Group climbed 6.5% and Frasers Group advanced 6.1%. JD Sports Fashion gained 5.6% and St. James's Place rallied 4.3%.
Land Securities, Flutter Entertainment, Airtel Africa, National Grid, Segro, Burberry Group, Melrose Industries, Entain and Barclays Group gained 2 to 3.3%.
Sage Group, Coca-Cola, Antofagasta, Severn Trent and Intertek Group declined sharply.
In the German market, Bayer climbed more than 4%. The German pharmaceutical and life sciences major announced that its clinical stage cell therapy unit BlueRock Therapeutics LP's investigational cell therapy bemdaneprocel to treat Parkinson's disease has received the U.S. FDA's Regenerative Medicine Advanced Therapy or RMAT designation.
Porsche, Commerzbank, Adidas, Fresenius Medical Care, Deutsche Telekom, BASF, Puma, RWE, Continental, Symrise and Covestro gained 1.5 to 2.3%.
Volkswagen ended more than 5% down. SAP and Merck lost about 4% and 2.2%, respectively.
In the French market, ArcelorMittal climbed more than 3%. Airbus Group, LVMH, BNP Paribas, Accor, Vinci, Renault, Societe Generale, Hermes International and L'Oreal also posted strong gains.
Capgemini, Edenred and Dassault Systemes declined sharply.
In European economic news, the euro area unemployment rate dropped marginally in April, data published by Eurostat showed. The unemployment rate fell to 6.4% in April from 6.5% in March. The rate was expected to remain unchanged at 6.5%.
Euro area economic confidence improved in May as the economy recovered from a recession and the unemployment rate dropped slightly in April, separate data showed. The economic confidence index rose less-than-expected to 96.0 in May from 95.6 in the previous month, survey results from the European Commission revealed. The reading was forecast to improve more sharply to 96.2.
Data showed that unemployment decreased by 100,000 from March. At the same time, the number of people out of work fell 101,000 from the same period last year. The youth unemployment rate dropped to 14.1% from 14.3% a month ago.
UK car production declined for the second straight month in April, reflecting factory adjustments in preparation for next generation models and their electrified powertrains, the Society of Motor Manufacturers and Traders, or SMMT, said Thursday. Car production declined 7% on a yearly basis.