Europe midday: Shares dip into the red as German GDP, IAG results disappoint

European shares slipped into the red on Friday as a fall in German GDP dampened sentiment, while strong results from airline group IAG also failed to impress investors.

The pan-regional STOXX 600 was down 0.12% at midday with major bourses mixed. Asian shares had a mixed session, with China and Hong Kong in the red, but Japan's Nikkei outperformed after prospective new central bank governor Kazuo Ueda said ultra-low interest rates must be maintained.

In Europe, the German economy contracted more strongly than expected in the final quarter of 2022, as inflation and the energy crisis hit household consumption and capital investment.

The economy shrank by 0.4% in compared with the previous three months, the statistics office said. Preliminary data from the office had pointed to a 0.2% quarter-on-quarter contraction adjusted for price and calendar effects. In the third quarter of 2022, gross domestic product saw slight growth of 0.5% compared to the three months prior.

Meanwhile UK consumer confidence rebounded from historic lows in February, according to a survey released by GfK on Friday.

The long-running consumer confidence index rose seven points to -38, with all five confidence measures up, but GfK said the measure remains "severely depressed". Analysts were expecting a reading of -43.

In equity news German chemicals giant BASF fell on news it plans to cut plans to cut 2,600 jobs and halt buybacks as it warned of a further decline in earnings.

British Airways owner IAG flew lower despite a return to profit in 2022 as international air travel continued to recover from the Covid pandemic.

Reporting by Frank Prenesti for Sharecast.com