FX.co ★ European Shares Rise On Solid Data, Rate Cut Hopes

European stocks experienced an increase on Tuesday following a report that indicated rapid expansion of business activity in the euro zone, marking its speediest progress in nearly a year.

The overall PMI swelled from 50.3 to 51.4 in April, owing to a robust recovery in the overarching service sector of the euro zone. In the UK, private sector activity also expanded continuously for the sixth month, as demonstrated by an increase in the PMI from 52.8 to 54.0, marking an 11-month high.

Optimism about potential interest rate cuts by the European Central Bank and the Bank of England also reinforced investor confidence. The STOXX 600, a pan-European index, rose 0.6 percent to 505.17 following a similar increase on Monday. Germany's DAX and France's CAC 40 along with the UK's FTSE 100 also saw gains of approximately 0.6 percent and 0.3 percent respectively.

Swiss transport and logistics firm, Kuehne + Nagel International, saw a decline of 2.6 percent after announcing a 40 percent drop in their first-quarter earnings. Conversely, pharmaceutical giant Novartis AG saw a 4.7 percent surge following an upgrade in its full-year guidance.

JD Sports Fashion, based in London, experienced a spike of over 6 percent after suggesting a purchase plan for Hibbett, an American sporting-goods retailer, in an agreement valued at $1.08 billion.

Anglo American, a mining conglomerate, saw a 3.5 percent decline following a cut in its diamond production guidance. Associated British Foods, the owner of Primark, soared by 9.5 percent after raising its annual profit guidance backed by a 39 percent increase in first-half profit.

Taylor Wimpey, a renowned home builder, saw a rise of approximately 1 percent after reaffirming its 2024 outlook. However, Renault SA from France witnessed a roughly 1 percent decline despite a slight revenue increase in its first-quarter report.

Lastly, shares in German software manufacturer SAP AG increased by 3.5 percent. The company confirmed its 2024 outlook after reporting a 24 percent rise, amounting to 3.93 billion euro, in its first-quarter cloud revenue.