European stocks higher; German inflation data offers hope By Investing.com

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*EUROPEAN STOCKS HOLD NEAR 9-MONTH HIGHS TO START THE WEEK AS GERMAN INFLATION DATA OFFERS HOPE 🇪🇺 🇩🇪 🇫🇷 🇮🇹 🇪🇸 🇳🇱 🇬🇧

rose by 12.8%, compared with a November reading of 14.9%. Wholesale price growth peaked in April, with a 23.8% year-on-year increase.ZEW survey of economic sentimentThis is expected to show an improvement to -15.5 from -23.3 in December, and European equities have benefited from this boosted sentiment, with both the DAX and the CAC 40 over 8% higher so far this year.

However, this may be changing after the BOJ stunned markets last month by widening the band around its 10-year bond yield target, a move that investors saw as a prelude to a future rate hike. The World Economic Forum returns to the Swiss ski resort of Davos this week, with European Central Bank President Christine Lagarde and German Chancellor Olaf Scholz among the dignitaries expected to attend the glitzy affair after a pandemic-influenced three year absence.

Airbus stock fell 0.8% after analysts at Berenberg downgraded their outlook for the European planemaker to ‘hold’ from ‘buy’, warning that recently high inflation and ongoing supply chain challenges will likely impact the company in 2023.

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