Europe close: Politics and Geopolitics in focus

(Sharecast News) - European stock markets continued to grind higher, thanks to upbeat results from drinks giant Heineken, despite the release of hotter-than-expected US inflation data. Worth noting, Spanish daily Expansión noted strong buying of gold by German investors ahead of the country's elections.

And after the close of trading, Trump announced that the US and Russia would kick off peace talks.

Linked to the above, analysts at Barclays were reportedly telling clients that the risk premium associated with the war in Ukraine had taken 10% off European markets.

The pan-regional Stoxx 600 was up 0.11% to 547.78 and Germany's Dax by 0.50% to 22,148.03.

Both benchmarks notched up fresh record highs during Wednesday's session.

Spain's Ibex 35 outperformed, rising by 1.07% to 12,911.50, whilst Italy's FTSE Mib was the odd man out, drifting lower by 0.14% to 37,531.19.

All the main European equity benchmarks were at so-called 'overbought' levels.

US consumer price inflation came in clearly ahead of economists' forecasts due to increases in food, gasoline and shelter costs.

Some economists in the City also linked a little bit of the gain to the revised seasonal adjustment factors.

In equity news, Heineken shares surged 14% after the brewer reported better-than-expected operating profits and unveiled a £1.5bn share buyback program along with a higher dividend. The news lifted rivals AB InBev and Carlsberg.

French luxury goods firm Kering was up 7% by mid-morning, as UBS raised its target price on the stock after the company on Tuesday reported better-than-expected fourth-quarter sales.

Norwegian financial services company Storebrand slumped 9%after fourth-quarter earnings missed estimates.

ABN Amro jumped 8% after the bank's fourth-quarter results beat expectations.