European Shares Rise As UK GDP Returns To Growth

European stocks traded at three-week highs on Thursday as dovish views from Federal Reserve officials helped ease concerns around inflation and interest-rate hikes.

Sentiment was also boosted after data showed the U.K. economy recovered in August driven by the service sector rebound.

Gross domestic product grew 0.2 percent in August from July, when the economy contracted by revised 0.6 percent, the Office for National Statistics reported – matching expectations.

On a yearly basis, monthly GDP advanced 0.5 percent, in line with estimate. This was faster than the 0.3 percent growth registered in July.

The pan-European STOXX 600 was up 0.8 percent at 456.56 after rising 0.2 percent on Wednesday.

The German DAX jumped 0.7 percent, France’s CAC 40 was up half a percent and the U.K.’s FTSE 100 added 0.8 percent.

Swedish telecom ger maker Ericsson rallied 2.3 percent, reversing early losses after announcing a $2.9 billion impairment related to its acquisition of Vonage last year.

Swiss fragrance and flavor maker Givaudan added 1.5 percent despite reporting a decline in sales for the third quarter.

Restaurant Group shares soared 37 percent in London. The company will go private after agreeing a bid from Apollo Global Management.

EasyJet tumbled 4.5 percent despite the budget airline posting record fourth-quarter profit.

ITV rose about 1 percent after confirming it had received a case initiation from the CMA over possible breaches of antitrust laws.

Publicis Groupe shares jumped 5.5 percent in Paris. After reporting improved revenue for Q3, the public relations and adverting company now expects its organic growth to be in the range of 5.5 percent to 6 percent for full year 2023 against its previous expectation for 5 percent.

Germany’s Siemens Energy rose 1.5 percent after it has agreed to sell its Trench business to investment firm Triton as part of many strategic decisions to sharpen its focus on its core business.

Sugar producer Suedzucker climbed 2 percent after lifting its full-year earnings forecast.

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