European markets close higher as investors digest U.S. data; LVMH hits all-time high

European stock markets closed higher on Thursday as investors digested key U.S. inflation data. The pan-European Stoxx 600 index provisionally ended up 0.44%, its third session of gains since the four-day Easter weekend. Household goods led gains with a 2.3% jump, while utilities fell 1%. Luxury goods giant LVMH was the top performer on the Stoxx 600, rising 5.7% on strong first-quarter sales. The U.K. reported flat economic growth for February, versus a consensus expectation of 0.1% growth. The FTSE 100 managed slight gains of 0.25% for the session, buoyed by miners, housebuilders and gambling operators on sector news, said Hargreaves Lansdown’s lead equity analyst Sophie Lund-Yates. “While a bright day overall for the U.K. market, there are some clouds gathering as recession risk intensifies and that’s likely to keep a lid on gains for now,” she said in emailed comments. U.S. figures on Wednesday showed prices rose 0.1% in March and 5% year on year, according to the Labor Department, which showed that while U.S. inflation is still high, there are continuing signs that it is decelerating. Meanwhile an uptick in U.S. jobless claims added to signs the Federal Reserve may pause rate hikes soon. The dollar continued to weaken, with the euro up 0.6% against the greenback to $1.1056 and the British pound up 0.34% to $1.2524 as European stock markets closed. Investors are also analyzing minutes from the March Federal Open Market Committee meeting which showed that Fed officials anticipate the U.S. economy will enter a recession in the aftermath of the recent banking turmoil. In the U.S., stocks were higher while Asia-Pacific markets were mostly lower.