The STOXX 50 gained 0.2% and the STOXX 600 edged up by 0.1% on Tuesday, recovering from initial losses as traders processed preliminary inflation data for the Eurozone.
European stocks recover from early losses
Annual inflation rose to 2.4% last month, in line with expectations, largely driven by a rebound in energy prices. The data had little effect on market expectations for the European Central Bank, with investors still anticipating four 25bps rate cuts in 2025. Meanwhile, traders continued to evaluate the potential impact of Trump's tariff policies, after the President-elect denied claims that his administration was planning to implement softer measures. Financial services sectors were among the top performers, while healthcare and banking stocks saw the biggest declines.
LVMH and SAP biggest gainers
On the corporate front, LVMH (up 0.8%) and SAP (up 1%) posted gains, while Novo Nordisk dropped about 2%. Additionally, shares of Next surged more than 4% after the British retailer raised its profit forecast.
