U.S., euro zone inflation data in focus

European markets gave back some of the morning’s gains after flash euro zone inflation reading showed the headline consumer price index fell to 2.6% from January’s 2.8%. Economists polled by Reuters had forecast a headline reading of 2.5%.

Core inflation, stripping out volatile components of energy, food, alcohol and tobacco, was 3.1% — above the 2.9% expected.

– Elliot Smith

Shares of Daimler Truck hit a fresh all-time high Friday, spiking more than 13.5% in early deals, after posting record full-year profit and announcing a 2 billion euro ($2.16 billion) share buyback program.

The German truck maker posted better-than-expected pre-tax earnings of $5.5 billion euros for 2023, up 39% on the previous year’s 4.4 billion. Analysts had expected EBIT (earnings before income tax) of 5.2 billion.

The company also said it would conduct the buyback program over the course of the coming 24 months and proposed a dividend of 1.9 euros per share for 2023, up from 1.3 euros a year earlier.

Daimler’s Chairman Martin Daum described 2023 as a record year for the company in a statement, but cautioned that revenue and earnings were likely to be flat in 2024 amid “difficult economic conditions.”

— Karen Gilchrist

Grifols shares surged more than 19% in early trade to lead the Stoxx 600 after the Spanish pharmaceutical company said it expects to more than double its operating cash flow generation in 2024.

Shares of British broadcaster ITV jumped more than 14% after announcing the sale of its 50% stake in streaming service Britbox International to BBC Studios for £255 million ($322.04 million).

Daimler Truck shares gained 13% after raising its dividend and announcing a new 2 billion euro ($2.16 billion) share buyback program on the back of better-than-expected pre-tax 2023 earnings.

At the bottom of the European blue chip index, Swiss transport and logistics firm Kuehne & Nagel fell 13% after reporting that operating profits more than halved on the back of higher costs and weakness in its ocean freight division.

– Elliot Smith

The pan-European Stoxx 600 was up 0.4% in early trade, with tech stocks adding 1.1% to lead gains as all sectors and major bourses advanced.

Germany’s DAX was the strongest regional performer with a 0.7% climb.

Britain’s FTSE 100 is set to open around 61 points higher at 7,691, Germany’s DAX is seen up around 112 points at 17,790 and France’s CAC 40 is expected to add around 42 points to 7,969, according to IG data.

Investors should move out of cash and into fixed income with some duration, said Franklin Templeton’s chief market strategist, Stephen Dover.

“Inflation probably won’t get quite as low as market expectations and interest rates won’t drop quite as far as market expectations,” Dover said, adding that “this is is an opportunity, particularly in the fixed income markets, to pick up a little bit of yield.”

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— Lee Ying Shan