(Reuters) – European stocks rose on Wednesday as banks extended gains and buoyed upbeat results posted by US firm Nike for Europe’s troubled retail sector, and an improving economic outlook for the region also boosted the sentiment.
The European index finished up 1.7% and shares of consumer accessories companies, such as Adidas (ETR:) and Puma, led gains, after their US counterpart Nike reported gains and quarterly profits that exceeded expectations.
Shares of Adidas and Puma rose 6.8 and 9.5 percent respectively, while J. D Sports listed on the London Stock Exchange (LON:) climbed 6.1 percent, boosting the retail sales index.
Rising borrowing costs and the cost of living this year have disrupted the European retail sector, bringing the sector index close to posting its worst annual performance since 2008.
The German index rose by 1.5%.
This follows data released on Tuesday that showed a slight increase in consumer confidence in the eurozone in December.
The index fell to its lowest level since January, reflecting less anxiety among investors.
The pan-European STOXX 600 is down 2% so far in December after two consecutive months of gains, fueled by hopes that slowing inflation will allow the Federal Reserve and other central banks to slow the pace of interest rate hikes.
Banking stocks rose 1.6%, but were still on track for a year-on-year loss as gains from rising interest rates were offset by fears of a recession.
(Prepared by Amira Zahran for the Arab Bulletin – Edited by Ali Khafaji)
