Europe open: Stocks little changed as investors digest Japan data

European stocks were little changed in early trade as investors digested some disappointing Japanese growth figures.

At 0845 BST, the benchmark Stoxx Europe 600 index and France's CAC 40 were up 0.1%, while Germany’s DAX was up 0.2%.

At the same time, oil prices were firmer. West Texas Intermediate was up 1.4% at $45.09 a barrel and Brent crude was 1.3% higher at $47.57.

Spreadex analyst Connor Campbell said: “As Europe tries to get the sleep out of its eyes Asian investors have already been very busy. A woeful second quarter GDP figure from Japan, with the country not seeing any growth at all between April and June (compared to the 0.2% forecast and the 0.5% in Q1), was the biggest news of the overnight session, that stagnation suggesting the ongoing Abenomics programme is failing to have the desired effect.

“Monday is somewhat of an anomaly this week; between Tuesday and Friday there is a wealth of data from around the globe, most importantly including a few post-Brexit figures for the FTSE to handle. Today, however, the markets will have to contend with the same sloth-like, if high-hitting, trading that defined last week.”

Data released earlier showed Japan’s economy hardly grew in the April to June quarter, weighed by exports and business investment.

The economy grew 0.2% on an annualised basis, down from 1.9% in the first three months of the year. Meanwhile, private consumption nudged up just 0.2%, down from 0.6% growth the quarter before.

In corporate news, Swedish retailer H&M rose after it said sales in July increased 10%.

William Hill was a little weaker after rejecting an improved cash-and-shares offer from Rank Group and 888 Holdings received over the weekend.

Bovis Homes was sharply lower despite posting growth in profit and revenue for the first half, as it said it was too early to gauge the impact of Brexit.

FTSE 250 security firm G4S rallied after saying that Tim Weller will succeed Himanshu Raja as chief financial officer of G4S after Raja retires from the board and steps down from the role on 1 October. Weller will join the company from oilfield services group Petrofac, where he held the same role.

Entertainment One surged amid reports private equity firm KKR is considering a bid for the company after it rejected an offer from ITV.

Software firm Sage was under pressure after saying an internal login had been used to gain unauthorised access to some of its British customers’ data.