European Shares Advance On Economic Optimism

European stocks were moving higher on Wednesday, as inflation concerns eased and positive business and consumer sentiment data from France boosted hopes of economic recovery.

France’s consumer confidence index rose to 97 in May from 95 in April, statistical office Insee said. The score came in line with economists’ expectations.

The manufacturing sentiment index advanced to 107 in May from 104 in the previous month. Economists had forecast the score to rise moderately to 106. This was the highest score since August 2018, when the reading was 109.

U.S. Treasury yields were mixed after Federal Reserve officials reiterated their dovish views on easy monetary policy and inflation.

Closer home, ECB Executive Board member Fabio Panetta told Nikkei that the economic recovery in the euro zone is not strong enough for the European Central Bank to scale back its emergency asset buying at a June meeting.

The pan European Stoxx 600 rose 0.2 percent to 446.24 after ending flat with a positive bias on Tuesday. The German DAX edged up 0.1 percent, France’s CAC 40 index gained 0.3 percent and the U.K.’s FTSE 100 was up 0.1 percent.

French food company Danone dropped 1.1 percent after Berenberg downgraded the stock to “sell”.

Delivery Hero shares gained 0.6 percent. Spanish q-commerce startup Glovo said it would take over the online food ordering company’s businesses in Bosnia Herzegovina, Bulgaria, Montenegro, Romania and Serbia, and acquire certain assets of its Croatian operations.

Quality assurance group Intertek lost 3.6 percent. The British company reported like-for-like revenue growth of 2.7 percent for the Jan-April 2021 period, and said it is on track to deliver 2021 targets for revenue, margin accretion and free cash flow.

Real estate investment trust British Land dropped 1.8 percent after posting its third consecutive annual loss.

Retailer Marks & Spencer surged 4.7 percent after well-received results.

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