LONDON — European markets closed higher on Thursday as investors assessed inflation data from across the region and what it could mean for interest rates.
The pan-European Stoxx 600 provisionally closed 0.74% higher, with all major regional bourses and most sectors finishing in the green.
Tech stocks led gains, adding 2.05%, as investors parsed quarterly results from artificial intelligence heavyweight Nvidia. The AI chipmaker beat expectations and issued stronger-than-expected guidance for the ongoing quarter, but traders had been hoping for a stronger beat and shares were lower in premarket and early trade.
Germany's DAX index closed at a fresh record high above 18,900 points. Weak gross domestic product growth has weighed on sentiment around the euro area's biggest economy; however, more positive data came Thursday, as headline annual inflation on an EU-harmonized basis eased more than expected to 2% in August. Economists had been expecting a reading of 2.3%, compared to the previous month's 2.6% print.
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Spain's preliminary harmonized inflation, meanwhile, came in at 2.4% for August, down from July's 2.9% reading and below economists' 2.5% prediction.
The inflation data fueled expectations for further European Central Bank interest rate cuts, dragging the euro 0.4% lower against the U.S. dollar to $1.1076, and 0.17% lower against the British pound, to 84 pence. Markets have fully priced a September rate cut of 25 basis points following June's first move lower, with a significant chance of two more follow-up cuts this year.
Elsewhere, shares of French beverage maker Pernod Ricard jumped Thursday, before paring gains. The company reported a 1% drop in net sales for its full fiscal year but said it was expecting sales to grow again looking ahead. Shares closed 2% higher.
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Remy Cointreau shares, meanwhile, gained 3%. It comes after Reuters reported that China's commerce ministry said it would not impose provisional anti-dumping subsidies on brandy imported from the European Union. Both Pernod Ricard and Remy Cointreau make brandy.
Shares of German food delivery firm Delivery Hero rose 12.5% after the company said Thursday it plans to list its Middle East business, Talabat, on the Dubai stock exchange.
Asia-Pacific markets pulled back on Thursday, with the tech sector dragging some regional indexes. U.S. stocks opened higher after a losing session on Wednesday.
