European stocks fall due to disappointment in Chinese data

European equities were curtailed on Wednesday as weak data from China, strong inflation in the UK and disappointing sales from fashion retailer H & M raised concerns about a global economic recovery.

China’s industrial output rose at the slowest pace since July 2020 in August, and retail sales growth also slowed significantly due to strict COVID-19 restraints, the second largest slowdown in the world. There is growing concern about. Economy..

The Pan-European STOXX 600 fell 0.1% to 467.06, regaining some of its previous losses after an increase in Eurozone industrial production in July, surpassing expectations despite supply chain bottlenecks. ..

Eurostat reported that industrial output in 19 countries that share the euro increased by 1.5% month-on-month and 7.7% year-on-year in July.

Elsewhere, the data showed that UK annual consumer inflation accelerated in August at the fastest pace ever.

According to data from the National Bureau of Statistics, the consumer price index rose 2.0% in July and then 3.2% year-on-year. Economists predicted inflation of 2.9%.

The 1.2 percentage point increase was the largest ever recorded in a 12-month rate series that began in January 1997.

Inflation in output has accelerated more than expected to its highest level since 2011, questioning the Bank of England about the timing of monetary policy tightening and interest rate hikes.

The rate of increase in output prices rose from 5.1% in July to 5.9% in August. The rate was expected to rise moderately to 5.4 percent. This was the highest rate since November 2011.

Germany’s DAX and UK’s FTSE 100 were slightly higher, reversing the initial losses, but France’s CAC 40 index fell 0.2%.

Swedish retailer Hennes & Mauritz AB fell 3.1% after lower-than-expected sales of the world’s second-largest fashion retailer in the three months to the end of August.

Inditex, the owner of fashion brand Zara, fell 1.7%, despite approaching pre-pandemic sales.

Swiss drug giant Roche has fallen by more than 1% after announcing that it has no plans to dispute legal issues with pharmaceutical companies such as Hetero over patent rights.

Shares in zooplus AG fell 2.7% as financial investor KKR ended discussions on a potential voluntary takeover offer for Germany’s online pet platform.

British oil and gas company Tullow Oil surged 6.7% after regaining profits in the first half of 2021.

The restaurant group fell 3.5% after reporting poor performance in the first half of this year.

Lufthansa, Air France-KLM, IAG and easyJet fell 1-3% due to concerns about the spread of COVID-19 cases in China, reducing travel and leisure inventories.

China, in the midst of recent surges, has tightened its blockades in cities along the East Coast today, increasing orders for mass trials. coronavirus Case.

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European stocks fall due to disappointment in Chinese data

Source link European stocks fall due to disappointment in Chinese data

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