Europe midday: Shares rally as eurozone exits recession

The pan-European Stoxx 600 index was up 0.27% to 523 having hit a record 523.81 in early deals, with regional bourses all higher.

Eurozone economic growth ticked higher in the first quarter of 2024, official data showed on Wednesday.

According to flash estimates from Eurostat, the official statistics office of the European Union, seasonally-adjusted GDP increased by 0.3% in both the Eurozone and wider bloc.

That compares to a 0.1% decline in the previous quarter in the eurozone. Year-on-year, GDP rose by 0.4% in both regions.

Among individual countries, Germany saw GDP tick up by 0.2%, Spain by 0.7%, France by 0.2% and Italy by 0.3% quarter-on-quarter.

Year-on-year industrial production was down 1.0% in both blocs, less than the 1.2% expected. The biggest increase in industrial production was in capital goods, up 1%.

"US inflation data looks set to dominate market sentiment going forward, with the dollar heading lower for a third consecutive day today. The apparent optimism seen throughout markets does stand on somewhat unstable ground given concerns over the potential for stubbornly high inflation throughout much of this year," said Scope Markets analyst Joshua Mahony.

"With the eurozone economy clearly showing tentative signs of resurgent strength, today’s comments from European Central Bank’s Madis Muller that a June cut is very likely provides a welcome scenario where we could see them easing rates as the economy takes on an upward trajectory."

In equity news, drinks company Britvic surged after posting a jump in interim profit and revenue and announced a £75m share buyback, as it highlighted "strong" customer demand for its brands.

Shares in credit-checking and data giant Experian surged on Wednesday after the company delivered annual results at the top end of expectations and guided to an acceleration in top-line growth for the coming year.

Merck rose 4.5% after better-than-expected adjusted earnings.

Finland's Neste slumped 13.3% to the bottom of the Stoxx after the biofuels producer and oil refiner lowered its 2024 margin outlook for renewable products.

Germany's Thyssenkrupp dropped nearly 8% after cutting its annual forecasts for sales and net profit for the second time in three months.

Reporting by Frank Prenesti for Sharecast.com