British stocks experienced a notable increase for the second consecutive day as investors absorbed inflation data from Spain and Germany while US markets remained closed for Thanksgiving Day. The FTSE 100 index concluded Thursday with a rise of 0.08%, aligning with the trends observed across its European counterparts. In anticipation of the Thanksgiving holiday, the US Bureau of Economic Analysis revealed that the personal consumption expenditures price index, the preferred measure of inflation by the US Federal Reserve, saw a month-over-month increase of 0.2% and a year-over-year rise of 2.3% for October, aligning with analysts' forecasts.
Core inflation figures also met expectations, recording a 0.3% increase monthly and a 2.8% rise annually. Shifting focus back to Europe, recent data from Germany's Federal Statistical Office indicated that annual inflation in the region's largest economy climbed to 2.2% for November, up from 2% in October, although it fell short of the anticipated 2.3%.
The harmonized annual inflation rate remained steady at 2.4%, below the consensus estimate of 2.6%. "The just-released flash estimate of German inflation in November wraps up a good day for the European Central Bank hawks," noted ING. "With headline inflation showing signs of acceleration and economic sentiment stabilizing, the sentiment against a 50 basis point rate cut in the upcoming December meeting is expected to strengthen." Meanwhile, in Spain, both headline and harmonized inflation rates surged to 2.4% in November, a notable increase from 1.8% in October, according to preliminary data from the country's statistics agency.
These annual figures aligned with analyst expectations. In corporate developments within the UK, Renewi ($RWI) saw an impressive jump of 46.75% at market close after reaching a preliminary agreement regarding its potential sale to Macquarie Asset Management. This comes after several approaches from the Australian firm and follows over a year of declined offers.
Macquarie's final proposed offer is valued at 8.70 pounds sterling, representing a striking 57% premium compared to the company's closing share price on Wednesday. Additionally, Loungers plc ($LGRS) rose by 27.73% following the acceptance of a 3.10 pound-per-share takeover bid from Fortress Investment Group's CF Exedra Bidco.
This acquisition values the UK cafe and bar operator at 338.3 million pounds, equating to an enterprise value of 350.5 million pounds, with the deal anticipated to be finalized in the first quarter of 2025..