European Shares Extend Gains Ahead Of German Inflation Data

European stocks rose sharply on Tuesday to extend gains from the previous session, as investors awaited German consumer price data expected to confirm the gradual easing that started last month.

Official data released earlier today showed Germany’s unemployment rate held steady at seasonally adjusted 3.0 percent in November. The number of people out of work decreased 6,500 from October to 1.32 million.

Elsewhere, French Prime Minister Elisabeth Borne said that inflation was expected to peak at the start of 2023 before retreating.

“We will have a peak at the beginning of the year and then it’s going to decline,” Borne told Franceinfo radio.

Markets also await a reading on U.K. manufacturing for December, which is expected to have held steady year-on-year.

The pan-European STOXX Europe 600 jumped 1.4 percent to 434.82 after gaining 1 percent in the previous session.

The German DAX rallied 1.1 percent and France’s CAC 40 index added 0.9 percent, while the U.K.’s FTSE 100 was up more than 2 percent on its first trading session of 2023.

Brenntag shares surged 5.6 percent. The German chemicals distributor said that it has decided to terminate preliminary discussions with Univar Solutions (UNVR) for a potential acquisition.

Oil and gas firm BP Plc jumped 4.4 percent and Shell rallied 4.1 percent as oil prices edged higher despite growth concerns.

Hikma Pharmaceuticals surged nearly 4 percent. The pharmaceutical company has launched an authorized generic version of Jazz Pharmaceuticals’ Xyrem (sodium oxybate) oral solution CIII.

Wizz Air Holdings climbed 1.2 percent. The low-cost airline reported that, in December, it carried 4,180,310 passengers, a 58.4 percent increase from a year ago.

Essentra, a provider of plastic and fiber products, added 1.6 percent after confirming that Scott Fawcett has assumed the role of Chief Executive and Executive Director, with effect from January 1.

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