Europe open: Stocks drift lower in quiet trade

European stocks drifted lower early on Friday in holiday-thinned trade, with little in the way of corporate or macroeconomic news to drive markets.

At 0900 BST, the benchmark Stoxx Europe 600 index was down 0.5%, Germany’s DAX was 0.6% lower and France’s CAC 40 was off 0.7%.

At the same time, oil prices edged lower. West Texas Intermediate was down 0.1% to $48.19 a barrel and Brent crude was down 0.5% at $50.65.

Andy McLevey, head of dealing at stockbroker Interactive Investor, said: “With little on the corporate front to drive momentum European markets have nudged into the red in early trading this morning as investors pause for breath as we head towards the weekend.”

Corporate news was thin on the ground.

AP Moeller-Maersk was on the front foot after the group said it is still considering several options in its strategic review following a media report it was looking into a two-way split into an energy and transport company.

BMW shares were in the red after Goldman Sachs downgraded the stock to ‘neutral’ from ‘buy’ and cut the price target on valuation grounds.

In London, William Hill rallied after Rank Group and 888 Holdings abandoned their proposed tie-up with the bookmaker.

Data released earlier by Destatis showed German producer prices ticked higher in July.

The index of producer prices for industrial products was up 0.2%, following a 0.4% increase in June and May. Economists had been expecting the index to nudge up 0.1%.

Compared to July 2015, the index of producer prices was down 2%, which was a touch less steep than the 2.1% drop pencilled in by economists.

Energy prices were the biggest driver, down 6.2% compared with July 2015, while prices of intermediate goods were down 1.8%.

Prices of non-durable consumer goods rose by 0.4%, while prices of capital goods and durable consumer goods were up 0.5% and 1.2%, respectively.

Excluding energy, German producer rose 0.2% on the month, but declined 0.5% on the year.