European shares rise with the focus on data, Fed’s Powell

(Reuters) – European shares rose on Wednesday, joining Asian peers, although caution remained amid disappointing China factory activity data, and as investors looked to U.S. Federal Reserve Chair Jerome Powell’s speech for more clues on monetary policy stance.

Broad-based gains saw the pan-European index rise 0.3% by 0825 GMT, on track to break a three-day losing streak. The index is up around 6.4% for November, putting it on course for its second straight month in the black.

Luxury stocks were among the biggest boosts to the STOXX 600 on the day, followed by tech and energy stocks.

Miners underperformed, dropping 0.5% as iron ore and prices fell on demand fears after data showed China’s manufacturing and services activities shrank further in November to seven-month lows, stung by the country’s strict COVID-19 restrictions.

Rio Tinto (NYSE:) fell 0.7%. The company said its iron ore shipments in 2023 would be in the same range as this year’s forecast, although costs would rise.

Investors will also be eyeing euro zone inflation data which is expected to have cooled year-on-year in November.

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