European stock markets rose Thursday, rebounding after recent losses as investors digested regional inflation data and the outlook for central bank rate cuts. European equities retreated on Wednesday, handing back some of the gains seen late last year that pushed the regional indices close to two-year highs as investors dialled back their bets for a U.S. soft landing and rapid Fed rate cuts. Adding to this, back in Europe, French inflation came in softer than expected earlier Thursday, with consumer prices rising 0.1% on the month in December, an annual rise of just 3.7%.

European stock markets rose Thursday, rebounding after recent losses as investors digested regional inflation data and the outlook for central bank rate cuts. European equities retreated on Wednesday, handing back some of the gains seen late last year that pushed the regional indices close to two-year highs as investors dialled back their bets for a U.S. soft landing and rapid Fed rate cuts. Adding to this, back in Europe, French inflation came in softer than expected earlier Thursday, with consumer prices rising 0.1% on the month in December, an annual rise of just 3.7%.