March 16 (Reuters) – European stocks rose on Tuesday as German online fashion retailer Zalando and carmaker Volkswagen jumped following upbeat earnings forecasts, while investors awaited the U.S. Federal Reserve’s views on a recent pick-up in inflation.
The pan-European STOXX 600 index rose 0.4%, crawling closer to a record peak set last year and tracking an overnight rally on Wall Street on optimism about an eventual economic recovery from the pandemic lows.
Zalando jumped 4.4% after it forecast 2021 revenue growth above market expectations following a strong start to the year. Its shares touched a three-week high and lifted the wider retail index.
Volkswagen AG was up 3.8% after the world’s second-largest carmaker said it was confident that cost cuts will help it improve profit margins in the coming years.
The German DAX rose 0.5%, while UK’s blue-chip FTSE 100 gained 0.6% as a weaker pound boosted the dollar earners on the index.
(Reporting by Sruthi Shankar and Devik Jain in Bengaluru; Editing by Arun Koyyur)