Economic news

Oil Stocks, Earnings Drive European Stocks Higher

(Reuters) - European stocks inched higher on Wednesday to trade near all-time peaks, as a jump in oil stocks and strong earnings from companies including chipmaker Infineon helped counter inflation worries.

The pan-European STOXX 600 rose 0.1% by 0821 GMT, with energy stocks up 1.2% after oil prices were boosted by industry data showing U.S. crude stocks unexpectedly fell last week. [O/R]

Germany’s Infineon jumped 1.8% after the company beat quarterly sales estimates as a global semiconductor shortage drove prices higher.

British retailer Marks & Spencer surged 15.9% after beating forecasts for first-half profit and raising its full-year outlook.

Concerns about inflation remained as data showed China’s factory gate prices hit a 26-year high last month, rekindling worries around stagflation and profit margins for producers. [O/R]

Focus is now on Germany’s inflation data, as well as a key U.S. consumer prices report due at 1330 GMT. The U.S. CPI print comes on the heels of producer prices data showing inflation continued to run hot last month.

Meanwhile, Adidas skid 5.3% after paring its 2021 forecasts due to sourcing disruptions and a challenging China market after the sportswear company’s results missed expectations.

Reporting by Anisha Sircar in Bengaluru; Editing by Subhranshu Sahu

Source: Reuters

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