PARIS: European stocks pared early gains on Thursday after US September inflation rose by more than expected, while Novo Nordisk’s kidney drug trial success helped lift Denmark’s benchmark index to a record high.
The pan-European STOXX 600 index was up 0.1%, after earlier hitting a three-week high.
“Today’s US CPI number was not necessarily enough to keep the bullish enthusiasm going,” said Steve Sosnick, chief strategist at Interactive Brokers.
US consumer prices (CPI) rose 0.4% in September compared to forecasts of a 0.3% rise from economists polled by Reuters. On an annual basis, CPI rose to 3.7% versus estimates of 3.6%.
Energy stocks climbed 1.3%, leading sectoral gains, after oil prices rose on expectations that US interest rates had peaked.
Meanwhile, Novo Nordisk shares jumped 4.2% and touched a fresh record high after the Danish drugmaker had reported early signs of success in delaying the progression of kidney disease in diabetes patients.
The broader OMX Copenhagen 20 hit a record high and closed 2.3% higher. Longer-dated eurozone bond yields and US Treasuries crept higher after the US CPI data, having fallen earlier in the session.
Rate sensitive utilities and real estate stocks fell 0.7% and some 1% respectively.
Minutes from the European Central Bank’s September meeting, released on Thursday, showed a division among policymakers when they opted to raise the deposit rate to a record 4%, but signalled an end to the tightening cycle.
Media stocks jumped 0.9% to a fresh 22-year high, with advertising group Publicis hitting a record high after raising its 2023 sales and margin forecasts.
In Britain, Restaurant Group shares surged 36% after an Apollo Global owned and managed vehicle announced the acquisition of the Wagamama owner for 506 million pounds ($623 million) in cash.
Halfords shares closed at a two-month high, after Betaville reported there has been takeover interest.
Meanwhile, Barclays dropped 3.1%, underperforming the wider market, with several sources attributing the fall to comments by the bank’s CEO about the broader sector outlook.
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