European markets: stocks, news and data

The pan-European Stoxx 600 ended 0.52% higher to hit an all-time high of 528.33 points, having notched a record intraday high earlier in the session, according to LSEG data.

Chemicals stocks led the gains, adding 2.75%, while auto names rose 2.23%.

It comes after Chinese markets clocked their best week in almost 16 years, with the mainland’s CSI 300 rallying 15.7% this week. The last time the index saw a bigger weekly gain was the week ended Nov. 14, 2008.

China launched a large-scale stimulus package this week in a bid to boost growth and restore confidence in the world’s second-largest economy.

The People’s Bank of China said it is cutting its seven-day reverse repo rate to 1.5%, the second reduction in around three months, and slashed the reserve requirement ratio of financial institutions by 0.5 percentage point.

In European markets, France and Spain both published preliminary data Friday showing a sharp drop in harmonized inflation.

The September readings fueled expectations that the headline inflation rate of the euro zone as a whole will reflect a steep drop to below the ECB’s 2% target.

Statistics agency Eurostat is scheduled to publish flash euro zone inflation data for September on Tuesday.

Krisztian Bocsi | Bloomberg | Getty Images

Looking at individual stock moves, shares of Italian fashion group Moncler surged almost 11%, hitting the top of the European benchmark. It comes after French luxury giant LVMH struck a deal to invest in Double R, an investment vehicle controlled by Moncler, Reuters reported. Shares of LVMH added 3.7% on the news.

Meanwhile, shares of Spanish bank Banco Sabadell closed 4.8% lower. The lender is the subject of a hostile takeover bid from larger Spanish bank, BBVA.

Speaking to CNBC’s Charlotte Reed on Thursday, Banco Sabadell CEO César González-Bueno said BBVA’s proposal is “very volatile” and offers a “completely insufficient” price. Earlier in the week, BBVA CEO Onur Genç told CNBC that the takeover was “moving according to plan.”

On Wall Street, U.S. stocks were mixed as highly anticipated data showed inflation moved closer to the Federal Reserve’s target in August. The personal consumption expenditures price index, the Fed’s preferred inflation gauge, rose 0.1% in August, putting the 12-month inflation rate at 2.2%, down from 2.5% in July. Economists surveyed by Dow Jones had been expecting all-items PCE to rise 0.1% on the month and 2.3% from a year ago.

Here are some key points that are often of interest in European markets:

1. Stock Market Performance : European stock markets, such as the **FTSE 100** (UK), **DAX** (Germany), and **CAC 40** (France), are influenced by factors such as monetary policy, inflation, economic growth, and global events. Stock price fluctuations often reflect investor sentiment regarding the economic stability and prospects of major companies in the region.
2. Economic and Geopolitical News : News about government policies, international trade relations, and geopolitical issues often have a direct impact on the European markets. For example, conflicts in Eastern Europe, changes in interest rates by the European Central Bank (ECB), or developments related to Brexit can create volatility in the markets.
3. Economic Data : Data such as **inflation rate**, **GDP growth**, **employment report**, and **consumer sentiment index** are very important for investors in predicting market trends. In Europe, the ECB’s policy on interest rates or bond-buying programs (quantitative easing) also play a big role in determining market direction.
4. Global Factors : Given that Europe is part of the global economy, developments in the United States, China, and other major countries also have an impact. The policies of the US Federal Reserve, for example, often cause a chain reaction in the European stock market.

Overall, the European stock market is often stable compared to other markets, but it is still affected by various internal and external factors. Currently, much attention is focused on global economic uncertainty, such as high inflation and the possibility of a recession, which may weigh on the market. However, investment opportunities still exist, especially in the green energy, technology, and financial sectors that continue to grow in Europe.

Following economic news and data regularly is essential to understanding the direction of market movements, especially in the midst of dynamic economic conditions.

— CNBC’s Lim Hui Jie contributed to this report.