European shares rise after two days of losses, Reuters headline data

© Reuters. German stock price index DAX chart illustrated at the stock exchange in Frankfurt, Germany, May 31, 2022. REUTERS / Staff

By Susan Mathew

(Reuters) – European shares rallied on Thursday, led by industrial and high-profile names, with gains capped by a slump in energy shares and lingering growth worries. economy slows down.

The pan-European index rose 0.4% after losing nearly 2% in the past two sessions, with markets closely watching a slew of economic data for more clues on central bank action. .

Volumes are expected to drop as markets in London are closed for the Queen Elizabeth Platinum Bank holiday.

French spirits group Remy Cointreau jumped 3.5% after beating full-year profit estimates and offered an upbeat outlook for this year and beyond.

Other luxury stocks followed suit. LVMH, L’Oreal and EssilorLuxottica rose from 1.3% to 2.4%, providing the biggest gains for the index.

Oil stockpiles fell as crude prices fell on some speculation that Saudi Arabia might increase production in response to the US urging. TotalEnergies, Shell (LON:) and Equinor’s Amsterdam listings are down 1.4% to 1.8%.

An OPEC+ meeting later in the day also aims to find production clues. [O/R]

Euro-area producer price data for May, to be released in the morning session, is expected to indicate that the upside momentum may slow from the previous month but increase from the previous month. with the same period last year. That would follow this week’s data showing consumer prices in the eurozone rose to record highs.

“The producer price index increases at least partially will be carried over to consumer prices, and that usually takes eight to 12 months. This means that the CPI will most likely stay high for at least eight years. to 12 months,” said Teeuwe Mevissen, senior economist, eurozone, at Rabobank.

Swiss consumer price data on Thursday showed inflation rose to a 14-year high in May.

Investors will also keep an eye on US private employment and weekly jobless claims data due later in the day.

Although more jobs are expected, the weekly unemployment rate did not improve from the previous week. Friday’s nonfarm payrolls data could dictate how stocks end this week as investors fret over the pace of central bank tightening.

Markets have been gripped by fears of slowing growth as global central banks try to tame rising inflation without pushing economies into recession. STOXX 600 will definitely end the week down around 0.8%.

Among other stocks, Scandinavian airline SAS rose 1.8 percent on reports that a group of foreign investors was looking to acquire.

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