European stocks gained as investors looked to U.S. economic data for clues on the interest-rate path while tariff tensions continue to simmer.
The Stoxx Europe 600 Index rose 0.5% as of 10:47 a.m. in London after dropping as much as 0.4% in early trading. Health care shares led gains, with Novo Nordisk A/S rising after Kepler Cheuvreux upgraded the drugmaker. Defense shares rose after Jefferies analysts started coverage on a slew of stocks.
Autos, meanwhile, underperformed as truckmakers tumbled on concern that a rollback of US environmental regulations could reduce demand for new models.
“European markets are looking for direction with the tariff war escalating one the one side, but hopes for a big German spending package increasing,” said Joachim Klement, head of strategy, economics and ESG at Panmure Liberum.
While the US equity selloff has dented a global stock rally, there are many voices favoring the European market. A potential truce in Ukraine and fiscal stimulus and looser monetary policy are among the tailwinds.
Investors will later turn their focus to US producer price index numbers after data Wednesday showed consumer prices rose at the slowest pace in four months in February.
In other economic news, the Bank of France downgraded the French growth outlook for 2025 as the anticipated impact of the trade war compounds an already slow start to the year. Still, the CAC 40 index rose 0.5% on Thursday.
“Tactical investors are coming into the market to buy the dip,” added Klement.
Allegra Catelli, Bloomberg News
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