European Stocks Rebound as Euro Area Exports, Inflation in France Rise

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European equity benchmarks rebounded on Wednesday ahead of a decision from the Federal Reserve bank on US interest rates which is due after markets close in Europe and following increases in the value of exported goods from the euro area and a rise in French inflation.

America's central bank is widely expected to hold interest rates in the US at current levels after a disappointing job report showed that only a fraction of the jobs that had been expected to have been added in May were created.

In other, macro-economic news, euro area seasonally adjusted exports increased by 4.9% in April compared to March, according to data published by Eurostat, the European Union's statistics office. And, in France, the consumer price index posted a 0.4% gain in May year-on-year, with the rise coming mainly from a price upturn in fresh foodstuffs as well as a strengthening in petroleum product prices, according to French statistics agency INSEE.

In equities, miners led the gainers on London's FTSE 100 Index, with Antofagasta, Glencore, Anglo American and Rio Tinto up by 5.5%, 4.9%, 4.5% and 3.1%, respectively. Supermarket chains Tesco and Morrison (Wm) Supermarkets were 2.9% and 2.2%, higher, respectively, and clothing chain Burberry was up by 3.2%.

On Frankfurt's DAX, Deutsche Bank was 2.0% higher, followed by technology major Siemens, up by the same amount, and chemicals company BASF, trading 1.8% higher. Car-makers BMW and Volkswagen were up by 1.8% and 1.0%, respectively, and electricity distribution company RWE advanced by 1.6%.

And, on Paris' CAC-40, electricity distribution company Schneider Electric was 3.1% higher, followed by media company Vivendi, up by 2.2% and aircraft manufacturer Airbus Group, trading 1.8% higher. And, on Madrid, Inditex, the owner of clothing chains Zara, Pull and Bear and Oysho, was up by 3.4% after posting a 6% increase in its net profit during the first quarter of the year when compared to the prior-year period.

The FTSE 100 was 0.83% higher, Frankfurt's DAX was up by 0.90% and Paris' CAC-40 was 1.18% higher at the time of writing. The Stoxx 600 Index was up by 0.9%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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