Sanofi expects Q4 earnings boost from FX, flu vaccine sales
French inflation slows unexpectedly in December to 6.7
Euro zone recession may not be as deep as feared PMI
STOXX 600 adds 0.8

Jan 4 Reuters European shares extended gains on Wednesday as a lower inflation reading from France, the euro zone39;s secondbiggest economy, and betterthanexpected business activity data boosted sentiment.

The panEuropean STOXX 600 rose 0.8, while France39;s CAC 40 added 1.3.

Data on Wednesday showed euro zone business activity contracted less than initially thought, suggesting the bloc39;s recession may not be as deep as feared.

Further, preliminary data showed inflation in France slipped in December from a record high in the previous month, tracking a slew of encouraging data from improving euro zone manufacturing numbers to a slowdown in Germany39;s inflation.

This is continuing the narrative that prices are slowing faster than expected, which is certainly welcome news for the euro zone as a whole because it eases the pressure on consumers and also companies, said Streeter.

The regional STOXX 600 ended 2022 sharply lower on fears of an economic slowdown as central banks raised rates to rein in soaring prices, driven by surging fuel costs since Russia invaded Ukraine and a reopening of the economy after the COVID19 pandemic.

Investors are now waiting for the minutes from the Fed39;s December meeting for cues on the U.S. central bank39;s monetary policy tightening path….