Europe midday: Shares edge ahead as Auto Trader motors on
European stocks were flat at the opening on Thursday as investors digested a torrent of corporate earnings and US data showing a spike in inflation.
The pan-European Stoxx 600 was up 0.07%. In the US, official data showed US consumer prices had risen at their fastest pace in three decades, prompting fears that the Federal Reserve could tighten policy at a faster rate. With US markets closed for Veterans Day on Thursday there was little impetus to trade.
In Asia, troubled developer China Evergrande managed to avert a loan default at the last minute for the third time in the past month.
"We’d been suggesting a pullback was likely for the major US markets; so far it’s only mild but if inflation fears lead to expectations the Fed will tighten policy then stocks could have further to decline. As far as European markets go, watch cases on the continent and the political appetite to reimpose restrictions," said Neil Wilson at Markets.com.
On the economic front, sterling was down against the dollar after figures from the Office for National Statistics showed that economic growth slowed in the third quarter amid supply chain issues.
GDP grew 1.3% between July and September, down from 5.5% in the second quarter and missing expectations for 1.5% growth. That leaves quarterly GDP 2.1% below where it was in the last quarter of 2019, before the pandemic hit.
Growth for July was revised down from a 0.1% drop to a 0.2% decline, while August’s was revised to 0.2% growth from 0.4%.
In equity news, shares in Auto Trader topped the Stoxx with an 11% rise after the company said it has achieved its highest-ever interim revenue and profits following solid performances from both the trade and retail segments.
Swiss chemical company Sika soared after agreeing to buy construction chemicals maker MBCC in a $6bn deal.
Johnson Matthey shares slumped after the company announced the departure of its chief executive, alongside plans to sell its battery materials business, as it warned the trading outlook for the full year was towards the lower end of market expectations.
Aker BP shares fell 10.7% after BP and Aker said they were exploring a possible sale of a 5% stake in the Norwegian oil and gas joint venture after its shares hit an all-time high this week.
UK discount retailer B&M fell after posting lower first-half core earnings. Luxury fashion brand Burberry fell 6.5% despite revenues back at pre-Covid levels, as it also reported a jump in interim pre-tax profit and reinstated its dividend.