European equities closed higher Thursday as more disappointing data from the U.S. were seen as strengthening the case for the Federal Reserve to keep interest rates at a record low into 2016.
The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.34% rose 1.5% to close at 360.99, ending a three-day losing streak that saw the benchmark shave off 1.9%.
Stocks have been hit in recent days on disappointing trade and inflation figures from China. But on Thursday, stocks in both Europe and the U.S. moved firmly higher after weak U.S. inflation data and disappointing manufacturing data lent support to views that the Fed won’t raise interest rates in 2015.
In Germany, the DAX 30 index /zigman2/quotes/210597999/delayed DX:DAX -0.21% tacked on 1.5% to finish at 10,064.80, aided slightly in part by dip in the euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.2778% to $1.1404. On the index, Volkswagen AG /zigman2/quotes/204309985/delayed DE:VOW3 -0.72% dropped 3.6% as Germany ordered a mandatory recall of Volkswagen diesel models installed with software that cheat emission tests.
In Paris, the CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.94% picked up 1.4% to close at 4,675.29, while the U.K.’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.04% ended 1.1% higher at 6,338.67. The British benchmark was weighed, however, by Burberry Group PLC /zigman2/quotes/205386705/delayed UK:BRBY +0.40% /zigman2/quotes/203108786/delayed BURBY -0.76% slumping 8.3% after posting first-half sales that were little changed from a year earlier.
An “increasingly challenging environment for luxury, particularly Chinese customers,” hurt second-quarter retail-revenue growth the British fashion heavyweight said in its release.
Movers : Unilever PLC /zigman2/quotes/205449809/delayed UK:ULVR +1.68% /zigman2/quotes/204685760/composite UL +0.50% shares rose 3.6%, after the consumer-products heavyweight said a jump in third-quarter revenue was driven by strong demand for ice cream. Magnum ice cream is one of Unilever’s brands.