Germany’s Dax index was 0.49% increased for the day and the Cac 40 closed up 0.72%.
Michael Hewson, chief market analyst at CMC Markets UK, mentioned: “European markets have been in a much more ebullient mood today despite further economic data from China that points to a weakening economy, after headline CPI (Consumer Price Index inflation) fell into deflationary territory for the first time since early 2020.
“This comes across as encouraging for inflation trends in Europe, as well as the US, in that it could prompt the end to further rate hikes from central banks here.
“We’ve also seen a modest rebound in the European banking sector after the Italian government clarified the details around its windfall tax bombshell from Tuesday.”
In the US, shares opened increased as they took constructive cues from Europe however quickly drifted decrease amid warning forward of key US inflation figures later this week.
Meanwhile, sterling had a weak session after the Niesr assume tank introduced a bleak outlook for the economic system, predicting that UK GDP would take one other 12 months to get better to pre-pandemic ranges.
The pound was down 0.23% to 1.271 US {dollars} and was 0.37% decrease at 1.158 euros at market shut in London.
In firm news, playing agency Flutter Entertainment dipped in worth after a slight slowdown in income development over the newest quarter.
The share fall got here regardless of the corporate behind Paddy Power swinging from a pre-tax lack of £112 million final 12 months to a £128 million revenue within the first six months of 2023. Shares had been 510p decrease at 14,395p.
Hiscox dropped after the insurance coverage agency missed analyst steerage for its retail enterprise.
The agency forecast mid-single digit development for its retail operation for the monetary 12 months, which they mentioned in contrast with a earlier outlook of round 10%.
As a outcome, shares within the firm completed down 67p at 1,046p.
Shares in infrastructure development agency Hill & Smith rose by 110p to 1,680p after it instructed buyers it expects to surpass revenue forecasts amid a lift from the US.
The worth of oil nudged increased amid one other escalation in tensions between Russia and Ukraine.
A barrel of Brent crude oil rose by 0.97% to 87.01 US {dollars} on the time markets had been closing in London.
The largest risers within the FTSE 100 had been BP, up 12.65p at 492.65p, IHG, up 144p at 5,934p, Shell, up 56.5p at 2,428.5p, Glencore, up 10.5p at 455.1p, and Haleon, up 5.8p at 328.65p.
The largest fallers of the day had been Hiscox, down 67p at 1,046p, Flutter, down 510p at 14,395p, Severn Trent, down 84p at 2,391p, RS Group, down 18p at 754p, and United Utilities, down 18p at 956.8p.
