European Equities Close Higher After Shared Currency Zone Posts Modest Rise In Dec. Inflation
European equities shrugged off news of a slower pace of economic growth in China last year to close higher on Tuesday after consumer prices rose in Germany, in the UK and across the shared currency union.
Gross domestic product in China rose by 6.9% over the course of 2015, which is the lowest pace of growth recorded in half a century, prompting speculation that Beijing may be considering some form of stimulus in the future. The country's benchmark index, the Shanghai Composite Index, closed 3.2% higher, marking a departure from the sharp losses registered on the index during the first two trading weeks of the year.
As the world's second largest economy, the pace of growth in China stands to impact companies around the world which rely on it as a major importer of goods and services.
In European macro-economic news, consumer prices rose by 0.3% in 2015 in Germany compared to 2014, according to Germany's federal statistics office, Destatis. This was the lowest pace of year-on-year growth recorded since 2009. In the UK, the consumer price index rose by 0.2% in the year to December 2015 compared to a 0.1% rise in the year to November 2015.
And, Euro area annual inflation was 0.2% in the Euro area in December 2015, up from 0.1% in November. The highest annual rates were recorded in Belgium, Malta and Austria, which posted increases of 1.4%, 1.2% and 1.1%, respectively.
In company news, the biggest movers on London's FTSE 100 index included tourism services provider TUI AG, commodities major Glencore, financial services provider Old Mutual and Anglo American, a mining company, up by 5.6%, 5.1%, 3.8% and 2.6%, respectively.
On the DAX, RWE, an electricity and gas company, rose by 8.7%, energy major E.ON surged 7.6%, Adidas, an athletic and sports lifestyle products provider, gained 3.1% and kidney dialysis company Fresenius Medical Care was 2.7% higher.
And, on the CAC-40, steelmaker ArcelorMittal led with a 5.8% gain, followed by retail and luxury goods distributor Kering up 5.7%. Electricity distributor Schneider Electric rose 3.6%, drugmaker Sanofi advanced 3.5% and financial services company Societe Generale gained 2.7%.
The FTSE 100 closed 1.68% higher, the DAX rose by 1.50% and the CAC-40 was 1.97% higher.
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