European stocks rise ahead of inflation data; Basilea shines (updated)

Grenke AG

04/04/2024 10:00

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        * 
      EZ March business activity returns to growth
    

        * 
      Sanofi to settle 4,000 Zantac cancer lawsuits in US state
courts
    

        * 
      Volvo Cars gain after posting record March sales
    

        * 
      STOXX 600 up 0.2%
    

  
 (Updated at 0837 GMT)
    By Johann M  Cherian and Ozan  Ergenay
       April 4 (Reuters) - European stocks climbed on Thursday
with investors awaiting an inflation print and minutes from the
European Central Bank's latest meeting, while shares of Basilea
jumped following the U.S. regulatory approval for the
drugmaker's bacterial therapy.
    The continent-wide STOXX 600 index  .STOXX  was up 0.2%, as
of 0837 GMT, led by a 1.6% gain in the basic resources sector
 .SXPP  as copper prices hit levels seen last in January 2023.
 MET/L 
    Top on traders radar is the currency union's February
producer prices data, due at 0900 GMT, with economists polled by
Reuters expecting a 8.6% decline, unchanged from January. 
    The data would follow a cooler-than-expected March consumer
inflation print, which is still away from the ECB's 2% target.
    "Although PPI takes time to engage and we're seeing signs of
that cooling quite quickly, CPI takes into account other areas
of inflation, such as services and wage growth which is what's
preventing that final fall down to the 2% level," Fiona
Cincotta, senior market analyst at City Index said. 
    Later in the day, investors will also parse minutes from
ECB's March meeting to ascertain the timing of the much-awaited
first interest rate cut.
    The benchmark index had a lacklustre start to the second
quarter with investors looking for more signs of confirmation on
the timing and scale of interest rate cuts. 
    The STOXX 600 had notched strong gains over the past five
months on optimism that major central banks would start reducing
interest rates in early 2024. 
    On the day, the automobiles sector  .SXAP  added 1.1%,
steered by Volvo Cars'  VOLCARb.ST  3.9% advance after the
Sweden-based firm posted a 25% jump in March sales from a year
earlier to 78,970 cars - an all-time high for global sales in a
single month.
    Basilea Pharmaceutica  BSLN.S  surged 7.9% to an over
six-month high after the Swiss firm received U.S. health
regulator's approval for its antibiotic Zevtera that treats
bacterial infections including multidrug-resistant strains.
    Shares of Compugroup  COP1n.DE  gained 6.4% after Morgan
Stanley upgraded the German medical software company's stock
rating to "overweight" from "equal-weight".
    Sanofi  SASY.PA  rose 0.8% after the French drug maker said
it reached an agreement in principle to settle 4,000 U.S.
lawsuits linking the discontinued heartburn drug Zantac to
cancer. 
    Cab Payments  CABP.L  gained 11.6% after the British fintech
company got a payment service provider licence in the
Netherlands.
    Meanwhile, Euro zone business activity expanded in March for
the first time since May 2023. However, the recovery was uneven,
a survey showed.    
       
    
    

 (Reporting by Johann M Cherian and Ozan Ergenay; Editing by
Sherry Jacob-Phillips and Mrigank Dhaniwala)
 ((johann.mcherian@thomsonreuters.com;))