# European shares rise as US inflation data signals end of rate-hike cycle Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-14 Category: TRADING Category URL: https://financedigest.com/category/trading Meta Title: European Shares Rise as US Inflation Data Signals End of Meta Description: Discover how European shares are up as US inflation data hints at the end of rate hikes. Stay informed with the latest market trends. Read now! URL: https://financedigest.com/european-shares-rise-as-us-inflation-data-signals-end-of-rate-hike-cyclehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-14t073125z1lynxmpej3d079rtroptp4europe-stocks-1736814147897-compressed.jpg) # European shares rise as US inflation data signals end of rate-hike cycle By Shubham Batra (Reuters) -European shares rose on Friday and were set for a fourth straight weekly gain, buoyed by hopes that the U.S. Federal Reserve could [soon pause its aggressive interest rate-hike cycle following cooler-than-expected inflation](https://www.financedigest.com/german-inflation-eased-in-november-but-too-soon-for-all-clear.html "German inflation eased in November but too soon for ‘all-clear’") in March. The pan-European STOXX 600 gained 0.4%, while [rising 1.4% for the week in the index’s longest winning streak since late last year – after Singapore’s central bank](https://www.financedigest.com/the-rise-of-biometric-technology-in-banking.html "The rise of biometric technology in banking") kept its key rates unchanged, signalling that the Fed’s next hike could be the last this cycle. [Real estate](https://www.financedigest.com/gold-london-real-estate-and-the-theresa-may-effect.html "GOLD, LONDON REAL ESTATE AND THE THERESA MAY EFFECT") shares led the gains, rising 1.6%, while insurance-sector shares slid 0.9%. The blue-chip STOXX 50 index held on to its 22-year highs hit on Wednesday, adding 0.4%. No news has been good news for the markets since after the investors were comforted that [banking sector crisis](https://www.financedigest.com/how-the-2023-banking-crisis-unfolded.html "How the 2023 banking crisis unfolded") has been controlled and will not see any spillovers,” said Michael Field, European equity strategist, Morningstar. That is one of the reasons why we see [European equities gain](https://www.financedigest.com/european-shares-set-for-weekly-gain-on-u-s-inflation-outlook.html "European shares set for weekly gain on U.S. inflation outlook") in last one month. [Investors will closely](https://www.financedigest.com/optable-closes-20-million-series-a-financing-broadens-investor-syndicate-in-new-round.html "Optable Closes Million Series A Financing, Broadens Investor Syndicate in New Round") monitor U.S. earnings starting later in the day with focus on [big banks](https://www.financedigest.com/big-banks-can-be-challengers-too.html "Big banks can be challengers too") including JP Morgan Chase & Co, Wells Fargo and Citigroup, as last month’s regional banking crisis and a slowing economy cast a shadow over the banking sector. Germany’s wholesale prices rose in [March at a slower pace than last month](https://www.financedigest.com/uk-new-car-sales-rise-17-in-march-best-ever-month-for-evs.html "UK new car sales rise 17% in March; best ever month for EVs") on the year, but rose 0.2%, compared with February. European shares had a healthy start to 2023 but were hit by recent banking crisis that weighed on sentiment and mixed [economic data](https://www.financedigest.com/dollar-skids-after-soft-u-s-economic-data-impact-of-opec-cuts-fades.html "Dollar skids after soft U.S. economic data; impact of OPEC+ cuts fades") raised uncertainty over outlook for global interest rates. European Central Bank’s Governing Council member Bostjan Vasle said on Thursday the central [bank needs](https://www.financedigest.com/bank-of-england-still-needs-to-see-the-job-through-on-inflation-pill.html "Bank of England still needs to ‘see the job through’ on inflation: Pill") to keep raising rates, given stubbornly high underlying inflation. TomTom [jumped 7.7% after the Dutch navigation and digital mapping company reported better-than-expected first-quarter revenue](https://www.financedigest.com/orpea-shares-jump-on-q4-revenue-and-cash-boost.html "Orpea shares jump on Q4 revenue and cash boost").Dechra jumped 35.7%, as the British veterinary pharmaceuticals firm said it had entered into talks with [private equity](https://www.financedigest.com/4-trends-that-will-have-a-major-impact-on-private-equity-in-2021.html "4 Trends that will have a major impact on private equity in 2021") group EQT for a possible offer in a 4.63 billion pound ($5.80 billion) all-cash deal. Shares in [rail transport](https://www.financedigest.com/chevron-considering-rail-transport-for-kazakhstan-oil-ceo-says.html "Chevron considering rail transport for Kazakhstan oil, CEO says") manufacturer Alstom were, however, down 4.4% after news that its CFO will leave. (Reporting by Shubham Batra in Bengaluru; Editing by Rashmi Aich) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---