Europe midday: Stocks take breather after two days of gains
The main European equity benchmarks were still sporting modest losses come midday, albeit following two days of notable gains.
Anheuser-Busch InBev
€56.60
18:06 22/01/21
BEL 20
4,215.59
18:07 22/01/21
CAC 40
7,500.26
16:59 20/09/24
DJ EURO STOXX 50
4,871.54
23:59 20/09/24
Engie
€15.78
13:40 24/03/23
IBEX 35
11,753.30
18:43 20/09/24
IBEX TOP DIVIDENDO
3,191.10
18:43 20/09/24
Renault
€38.47
16:40 20/09/24
Siemens AG
€166.66
16:45 20/09/24
Telefonica
€4.32
18:15 20/09/24
Xetra DAX
18,720.01
17:00 20/09/24
Sharply reduced global growth forecasts from the World Bank appeared to offset any positive impact from the start of the European Central Bank´s programme of buying corporate debt and another move higher in crude oil futures.
Sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade, and diminishing capital flows meant the global economy would grow 2.4% in 2016 and not 2.9%, as the Washington-based lender had predicted in January.
"In an environment of anemic growth, the global economy faces mounting risks, including a further slowdown in major emerging markets," the World Bank cautioned in its latest Global Economic Prospects report.
As of 11:53 BST the DJ Stoxx 600 was lower by 0.35% or 1.22 points to 345.04, the Dax by 0.48% or 48.92 points to 10,239.01 and the FTSE Mibtel by 0.25% or 45.82 points to 17,929.67.
Wednesday marked the start of the ECB´s company bond buying programme, including debt issued by the likes of Anheuser-Busch InBev NV, Telefonica, Siemens, Renault and Engie, according to people familiar with the matter cited by Bloomberg.
Acting as a backdrop, Chinese foreign trade data for May appeared to point to stable conditions in the domestic economy.
Indeed, analysts at Capital Economics believed there were early signs of a pick-up in shipments to emerging markets - although not all observers were quite as sanguine.
China's global trade surplus widened to $49.98bn in May from April's $45.6bn, missing estimates of $55.70bn. Exports fell 4.1% year-on-year, compared to analysts’ forecast for a 4% drop and the previous month’s 1.8% slide. Imports dipped 0.4% in May but it was an improvement on April’s 10.9% plunge and better than expectations for a 6.8% decrease.
Front month West Texas Intermediate crude oil futures were rising by 1.44% to $52.18 per barrel on the NYMEX, after data out overnight from the American Petroleum Institute revealing a larger-than-anticipated 3.6m barrel drawdown in stocks.
In parallel, euro/dollar was edging up by 0.20% to 1.13677.
Shares in Ingenico Group skidded 5% lower after US rival VeriFone Systems lowered its full-year earnings and revenue forecasts overnight.
Stock in Erste Group Bank AG retreated 3.7% on news of a stake sale by one of its shareholders.