European Stocks Give Back Ground After Early Rebound But Close Mostly Higher

(RTTNews) - After ending the previous session sharply lower, European stocks showed a strong move back to the upside in early trading on Wednesday but gave back ground over the course of the day.

The pan European STOXX 600 Index advanced by as much as 0.8 percent in early trading before pulling back and closing up just 0.1 percent.

Meanwhile, the French CAC 40 Index climbed by 0.6 percent and the U.K.'s FTSE 100 Index rose by 0.4 percent, while the German DAX Index closed just above the unchanged line.

Some early buying interest was generated in reaction to data showing U.K. consumer price inflation slowed to 3.2 percent in March from 3.4 percent in February, making it likely that the Bank of England will lower its key interest rate later this year.

Final data from Eurostat also revealed that inflation in the 20 nations sharing the euro currency slowed across the board last month, raising expectations for an ECB rate cut in June.

Euro zone inflation slowed to 2.4 percent from 2.6 percent in February, matching the preliminary estimate released earlier this month.

However, lingering geopolitical concerns and worries about the outlook for U.S. interest rates limited the upside and contributed to the subsequent pullback by the markets.

Shares of Adidas still spiked by 8.6 percent on the day, as the sportswear giant upped its full-year guidance after posting better-than-expected preliminary results for the first quarter.

Fast-fashion retailer ASOS also surged by 4.9 percent after backing its guidance for the fiscal year and naming a new CFO.

LVMH also jumped by 2.8 percent. The world's largest luxury group slightly missed first quarter revenue estimates but sounded optimistic about the industry's outlook, especially in China.

On the other hand, Dutch semiconductor equipment maker ASML Holding N.V. plunged by 6.7 percent after reporting weaker-than-expected new bookings in its first quarter results.

Likewise, food delivery company Just Eat Takeaway.com tumbled by 4.5 percent after orders slipped in the first quarter.