Europe midday: Shares extend losses as Adidas issues profit warning

European shares extended losses on Friday as a profits warning by sportswear giant Adidas offset better-than-expected economic data from China and the UK.

The pan-regional Stoxx 600 index was down 1.35% at 1250 GMT with all major bourses lower.

Consumer price inflation in China ticked up in January as the country reopened after more than two years of Covid restrictions, according to figures released on Friday by the National Bureau of Statistics.

CPI rose 2.1% on the year in January, up from 1.8% in December and better than forecasts of a 2.2% rise. Meanwhile, the producer price index fell 0.8% year-over-year in January following a 0.7% decline the month before. Analysts had been expecting a 0.5% drop.

In the UK, data showed the economy had narrowly avoided recession, official data showed on Friday, after stagnating in the last quarter of 2022.

GDP fell 0.5% in December, following growth of 0.1% in November and 0.55% in October. December’s print was dragged down by a 0.8% decline in the services sector, which recorded falls in health, education, transport and storage, arts and entertainment.

However, it was not enough to push the quarterly data into negative territory, and GDP was 0.0% in the three months to December, following a decline of 0.3% in November.

In equity news, shares in Adidas fell sharply on Friday after the sportswear giant issued its fourth profits warning in less than a year. The German firm said ending its partnership with controversial rapper Kanye West was set to wipe millions off annual profits.

Norwegian independent oil firm Aker BP gained 5% after saying it will boost its dividend by 10% after posting $2.2bn operating profit for the final quarter of 2022.

Swedish defence equipment maker Saab took off by 10% after reporting a fourth-quarter operating profit.

Swedish sports and outdoor group Thule plunged after announcing a 10% fall in fourth-quarter net sales.

Reporting by Frank Prenesti for Sharecast.com