Europe open: Stoxx up as investors mull US rate cut hopes

(Sharecast News) - European markets rallied on Thursday as investors digested US inflation data and a raft of corporate earnings. The pan-European Stoxx 600 was up 0.36% at 503 in early deals, with most major bourses in positive territory. Britain's FTSE 100 was the outlier, down 0.09%.

In the US CPI came in as expected, according to official data published on Wednesday, but core inflation, which strips out volatile food and energy prices, rose by 0.3% for the third month in a row, leaving the annual rate at 3.3%.

"With post-election clarity and seasonal optimism fuelling markets, investors are looking to Federal Reserve Chair Powell to don his best Santa outfit and deliver a rate cut next month, with markets giving odds of a cut at around 83%," said Hargreaves Lansdown analyst Matt Britzman.

In equity news, shares in Burberry surged 11% as the UK luxury brand unveiled an "urgent" turnaround plan to staunch declining sales across the world.

Banca Monte dei Paschi di Siena also soared after the Italian government cut its shareholding in the lender by 15%, raising €1.1bn. Peers Banco BPM and Anima Holding bought stakes in the world's oldest bank.

Siemens also gained strongly as the German industrial giant posted fourth quarter earnings slightly ahead of forecasts.

Poland's Allegro fell almost 12% as the e-commerce platform said it expected earnings growth to slow down to 4-7% at home in the fourth quarter.

Reporting by Frank Prenesti for Sharecast.com