European stocks started the second quarter on a positive note today, as investors turned their attention to key economic indicators, including upcoming inflation data from Germany, the anticipation of which is seen as key in shaping expectations for the European Central Bank’s (ECB) interest rate decisions.
The STOXX 600, which includes a range of stocks across Europe, was up 0.3% at 0712 GMT on Tuesday. The positive move came as market participants returned to the market after an extended Easter weekend.
Leading the gains, tech stocks showed notable strength, with BE Semiconductor Industries up 4.6%. The jump followed an upgrade by Barclays, which changed its rating on the company’s stock to “overweight” from “equal weight.”
Germany's DAX also reflected the upbeat mood, rising 0.3% ahead of the release of consumer price index data due at 1200 GMT. Economists had forecast an annual increase of 2.2% in March, a slight deceleration from the 2.5% increase reported in the previous month.
Investors are closely watching inflation data from Germany, the eurozone’s largest economy, as they are seen as a sign of the overall inflation trend in the eurozone. Broader eurozone inflation data is due on Wednesday.
In other market news, UBS, the Swiss multinational investment bank, saw its shares rise 1.2%. The financial institution announced the launch of a new share buyback program that could be as high as $2 billion. The plan includes the ability to complete up to half of the buybacks in 2024.
The market reaction to these developments reflects deep interest in the economic outlook and the direction of monetary policy in the European Union. As investors digest German inflation data, the data will likely influence market sentiment and expectations for ECB policy in the near term.
Source: Investing
