European shares soar to record highs on industrials

Europe’s benchmark index, the STOXX 600, reached a record high on Wednesday, rising by 0.4 per cent due to positive earnings reports boosting industrial and healthcare stocks as investors eagerly await US inflation data.

Experian, a credit data firm, saw its shares surge by 7.8 per cent following a promising forecast for annual organic revenue growth, according to Reuters.

Similarly, Poland’s InPost saw a 5 per cent increase in its shares after reporting higher Q1 core earnings. These companies led the gains in the industrial goods and services index.

In the healthcare sector, Merck KGaA’s shares rose by 4.5 per cent after reporting better-than-expected adjusted earnings.

However, not all companies shared in the gains. Neste, a Finnish biofuel producer and oil refiner, saw its shares plummet by 13.3 per cent to the bottom of the STOXX 600 after it lowered its 2024 margin outlook for renewable products.

Similarly, German conglomerate Thyssenkrupp’s shares dropped nearly 7 per cent after it cut its annual forecasts for sales and net profit for the second time in three months.

Investors are now focusing on the US consumer price inflation data, especially after Federal Reserve Chair Jerome Powell expressed confidence in easing inflation following a higher-than-expected producer price reading in April.