Europe midday: Shares surge on France CPI, EZ PMIs
European shares continued their rally on Wednesday as investors cheered a fall in French inflation and better-than-expected final eurozone business activity readings.
The pan-European Stoxx 600 was up 0.66% at 0834 GMT. France's CAC 40 added 0.94% as preliminary data showed inflation slipped in December from a record high in the previous month.
Its EU-harmonised inflation rate fell to 6.7% in December, down from 7.1% in November. The news was a further boost to sentiment after improving eurozone manufacturing data and a slowdown in Germany inflation reported on Tuesday.
Sentiment was also boosted as eurozone business activity contracted less than initially thought in December, according to a final PMI survey reading released on Wednesday.
S&P Global's final composite Purchasing Managers' Index (PMI) for the signle currency bloc rose to 49.3 in December from November's 47.8 and above a preliminary estimate of 48.8.
A reading of below 50 indicates contraction, and while the index has been below this mark since July, the latest reading was its highest in five months.
"The euro zone economy continued to deteriorate in December, but the strength of the downturn moderated for a second successive month, tentatively pointing to a contraction in the economy that may be milder than was initially anticipated," said Joe Hayes, senior economist at S&P Global Market Intelligence.
Oil edged lower after slumping in the previous session, weighed down by concerns about weak demand due to the state of the global economy and China's rising Covid cases.
Brent futures for March delivery fell 43 cents to $81.67 a barrel, a 0.5% loss, by 0700 GMT. US crude dropped 39 cents, or 0.5%, to $76.54 per barrel. Both benchmarks plunged more than 4% on Tuesday, with Brent suffering its biggest one-day loss in more than three months. The news hit FTSE 100 heavyweights Shell & BP, while lower gas prices saw British Gas owner Centrica and SSE fall for the second successive day.
In equity news, Sanofi was up after the French healthcare company said it expected its fourth-quarter results to reflect a boost from foreign exchange movements and flu vaccine sales.
Low-cost airline Ryanair reported a 21% rise in passenger numbers for December as travel rebounded from the Covid pandemic.
Ryanair said it carried 11.5 million passengers compared with 9.5 million a year earlier. On a rolling basis, Ryanair said 160.4m passengers flew its routes in 2022, up 121%. The news also boosted shares in Hungary-based rival Wizz Air.
Reporting by Frank Prenesti for Sharecast.com