stocks, news, data and ECB decision

Europe’s Stoxx 600 gained 1.05% Thursday, closing above the psychological level of 500 for the first time ever, as the European Central Bank’s latest monetary policy meeting fueled bets on a June rate cut.

Technology stocks rallied 2.26% as health care gained 2.3%.

Germany’s DAX and France’s CAC 40 were both around 0.7% higher, while the U.K.’s FTSE 100 ended the session up 0.17%.

The European Central Bank held interest rates steady Thursday and lowered its annual growth forecast.

The Bank now sees economic growth of 0.6% in 2024, down slightly from its prior forecast of 0.8%. Their inflation forecast for the year was brought to 2.3% from 2.7%.

Investors had been awaiting the March projections for an indication of when rate cuts may begin.

— Karen Gilchrist

Shares of Danish drugmaker Novo Nordisk rose 4.5% in morning trade after it said it was expanding its focus to include cardiovascular disease treatment after a late-stage trial showed its Ozempic weight-loss drug delayed progression of chronic kidney disease in diabetes patients.

New data released Thursday also showed the company’s experimental Amycretin drug boosted weight loss by 13%, according to Reuters.

Shares of Eli Lilly fell 2% in pre-market trade as competition heats up between the two major players in the obesity drug market.

— Karen Gilchrist

Shares of Hugo Boss plunged 18%, before paring losses slightly Thursday, after warning that it may fail to meet its 2025 sales target amid weakening consumer demand.

The German high-end fashion brand was on course for its worst trading day since 2016, after it said it expects sales to grow more slowly in the coming year despite reaching 4.2 billion euros ($4.6 billion) in 2023 — an increase of 18% on the previous year.

Shares were trading 18% lower at 8:52 a.m. London time.

— Karen GIlchrist

Shares of financial services firm Virgin Money jumped 36% in early deals on news that it would be acquired by British bank Nationwide for £2.9 billion ($3.7 billion).

On the other end, French office services and call center company Teleperformance sank 17.7% after missing its full-year revenue target for 2023 and pointing to limited growth in the year ahead.

CEO Daniel Julien dismissed reports that artificial intelligence innovation posed a risk to the business. “AI is going to help you gather the data … [but it] doesn’t make the decisions,” he told CNBC.

— Karen Gilchrist

External shocks, such as as geopolitical events or still restrictive monetary policy, could undermine growing confidence in the IPO market, investment firm Raymond James said Thursday.

“Exogenous shocks remain a real threat,” Sunaina Sinha Haldea, global head of private capital advisory, told CNBC. She added that technical flows — or sudden outflows of investment from one market to another — also risk causing disruption even as money begins to return to the market.

— Karen Gilchrist

U.K. house prices increased for the fifth consecutive month in February, in a sign that momentum is returning to the lacklustre real estate market, new data showed Thursday.

The average U.K. house price rose by 0.4% in February, marking an increase of 1.7% year-on-year, according to Halifax House Price Index.

Halifax Mortgages director Kim Kinnaird said that the data suggests cautious confidence is returning to the market in anticipation of a reduction in interest rates later this year.

“These figures continue to suggest a relatively stable start to 2024 and align with other promising signs of increased housing activity, such as mortgage approvals,” she said.

— Karen Gilchrist

India’s economic prospects are shining bright, attracting global investors eager to capitalize on the country’s immense growth potential.

The International Monetary Fund expects India’s real gross domestic product (GDP) to expand by 6.5% in 2024. 

However, tapping into these opportunities as a foreign investor is not as straightforward as buying shares listed on the Indian stock exchanges. Limits on foreign ownership, complex tax implications, and corporate governance concerns create barriers.

CNBC Pro subscribers can read more about how foreign investors can buy Indian stocks.

— Ganesh Rao

Many growth stocks are becoming expensive, prompting some investors to turn to value stocks.

“The S&P 500 at 5,075 with expected earnings growth of 10% for 2024 gives us $243 a share and puts us at 21X earnings – its pricey, plain, and simple,” said Brian Szytel, senior managing director of The Bahnsen Group, in late February. The S&P 500 closed around 5,078 on Tuesday.

He said he wouldn’t own the index at that level. “I would however, own parts of the market shift to more value-oriented names and believe that rotation that started in 2022 from growth to value will resume. This is a time to earn ‘carry’, income, and dividends,” he said.

Those interested in value stocks can consider the following from CNBC Pro’s screen of the Vanguard Value ETF. All have 20% or more upside and a buy rating of at least 50%, with the screen showing their current and 5-year average dividend yields.

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets are set to open flat to lower Thursday.

The U.K.’s FTSE 100 index is expected to open 3 points higher at 7,652, Germany’s DAX down 13 points at 17,698, France’s CAC 12 points lower at 7,943 and Italy’s FTSE MIB down 75 points at 33,312, according to data from IG. 

The European Central Bank will announce its latest monetary policy Thursday. On the earnings front, Continental, Lufthansa, ITV, Admiral Group and Kier are set to announce results.

— Holly Ellyatt