European Stocks Turn Higher Ahead Of Boe Meeting

 European Stocks Turn Higher Ahead Of Boe Meeting

European Stocks Turn Higher Ahead of BoE Meeting

The majority of the European stock markets are trading higher ahead of the highly anticipated Bank of England meeting. In addition, the latest inflation figures from the USA have also set the stage for the EU stocks to turn higher.

For now, the FTSE 100 (United Kingdom) is up by 0.3%, while the Dax Index (Germany) is up by 0.2%. Similarly, the CAC 40 (France) is trading 0.8% higher.

Improved Sentiment After US CPI Report

After the recent CPI report, it has been confirmed that inflation is rising at a very slow rate. This is good news for the stock and has improved the investor's sentiment all over the world, including Europe. Although it would be too soon to say that Fed's rate hike cycle is ending, it is indeed nearing its end!

Looking back at Europe, the upcoming earnings season will be the centre of attention for investors. And if we look at individual stocks from Europe, they are also showing promising upside.

Deutsche Telekom (DTEGn) gained 1.2% after the company raised its operating profit target. Although the company faced a small bump during the 1st quarter revenue, it seems investors are focusing on the positive side. ING (INGA) also gained 3.7% after the bank revealed its plan to buy back around 1.5 billion worth of shares.

On the contrary, Telefonica (TEF) was down by 2.1% after reports that the firm's Q1 net profit has gone down by 58%.

Another German company named Bauyer (BAYGN) also lost 6.8% after reports that the result would be skewed towards the lower bound of the range. The reason for this decrease is mainly attributed to cost inflation.

Looking ahead, the BoE is all set to hold its policy-setting meeting to decide whether another rate hike is viable or not! But when we look at the UK's double digit inflation, it becomes clear that yet another rate hike is on the way!

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