European Stocks Open to Close, Gains, Data and WEF in Davos

LONDON – European stocks rose higher on Wednesday as global markets tried to bounce back from a widespread decline in the previous trading session.

The pan-European Stoxx 600 added 0.8% in early trading, while utilities rose 1.7% to gain as all sectors and major exchanges enter positive territory.

Higher trading for European equities comes after regional markets slipped Tuesday, following negative global sentiment, while US markets struggled to sustain a comeback rally after weeks of losses.

There was some positive data on Tuesday with a flashy Euro-zone Purchasing Managers Index (PMI) in May coming in at 55.8, slightly ahead of estimates as business growth across the continent slowed but remained resilient. Still, global inflation and growth concerns continue to weigh on sentiment.

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Overnight stocks in Asia-Pacific bounced higher in trading on Wednesday, with New Zealand’s central bank announcing another rate hike. Meanwhile, US stock futures rose Wednesday morning after the Nasdaq Composite fell during the regular session, following a warning of slowing growth from social media company Snap, hurting its tech-heavy index.

The World Economic Forum continues in Davos on Wednesday with the event that brings together political and business leaders from around the world. This year’s summit comes after several years of the Covid-19 pandemic and amid Russia’s invasion of Ukraine, which is at the top of the agenda.

CNBC will speak today with a wide range of leaders, including the CEOs of RWE and Rabobank, Dutch Prime Minister Mark Rutte and Spanish Deputy Prime Minister Teresa Ribera, among many others.

In terms of data, the German final growth figures for the first quarter are expected.

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