Europe midday: Stocks claw back earlier losses ahead of Jackson Hole

European stocks were clawing back earlier losses by lunchtime on Wednesday as investors eyed the Jackson Hole symposium and in particular, a speech by Federal Reserve chair Jerome Powell.

At 1249 CEST (1149 BST), the pan-European Stoxx 600 was up 0.01% at 431.41.

The CAC 40 in Paris was just above the waterline, rising 0.01% - or 0.54 points - to 6,362.56, while Germany’s DAX was still in the red, down 0.1% at 13,181.61.

“The DAX is down more than 2% since the beginning of the week, and already gave back half of gains it recorded this summer,” said Swissquote senior analyst Ipek Ozkardeskaya.

“The softer euro could’ve normally given a boost to the European stocks, making them more affordable for foreign investors, but understandably, no one wants to stomach the risks of the deepening energy crisis in Europe.

“All the competitiveness that comes with the weaker euro is taken away by the increasing cost pressures due to the energy crisis, and the growing likelihood of a dark recession on the old continent.”

Ozkardeskaya said the euro was expected to dip further, adding that failure to stop the common currency’s weakening would make European imports - especially energy imports - more expensive for companies, and further boost inflation pressures.

“The European Central Bank will have to tighten as much as it can, but of course, if the policy tightening can’t stop the euro’s depreciation, the Europeans will find themselves with rising inflation, rising interest rates and slowing economies.”

Corporate news was thin on the ground as the usual summer lull kicked in, although Dutch insurance group ASR Nederland was up more than 2.5% after well-received first-half earnings.

The company reported an operating result of €513m (£432.41m), down from €532m year-on-year, with the decline put down to the impact of storms at the beginning of the year, and an “ongoing normalisation” of claims in property and casualty following the end of Covid-19 restrictions.

Elsewhere, flexible workspace provider IWG was weaker, after announcing the appointment of Charlie Steel as chief financial officer, succeeding Glyn Hughes.

Steel would join the board before the end of the year, while Hughes would remain with the business for a transitional period to ensure a smooth handover.

Premier Inn owner Whitbread was also lower, after reporting it had bought a prime freehold property on the Strand in central London, just off Trafalgar Square, for more than £200m.

Subject to planning, 5 Strand would become the newest ‘hub by Premier Inn’ compact-room hotel in the estate, and was expected to open in 2027.

Reporting by Josh White at Sharecast.com. Additional reporting by Michele Maatouk.