Europe open: Shares in cautious mood as Royal Mail delivers
European shares edged ahead in subdued mood at the opening on Thursday as investors continued to digest inflationary data and another daily deluge of corporate news.
The pan-European Stoxx 600 was almost flat in early trade. Britain’s FTSE 100 was down 0.17%.
Investors have taken a back seat after data released on Wednesday showed euro zone inflation at 4.1% year-on-year in October, more than double the European Central Bank’s target.
The ECB also warned of stretched valuations in property and financial markets, as the region recovers from the Covid pandemic against a backdrop of ultra-low interest rates and massive stimulus measures.
In London, pressure is on the Bank of England to lift borrowing costs after the consumer price index came in at 4.2% in October — its highest in almost a decade as energy and automotive costs soared.
The BoE raised eyebrows earlier this month after balking at a rate rise, despite indicating that one was imminent.
Asia-Pacific market closed mixed after losses overnight on Wall Street.
Investors will be eyeing US jobless claims later on Thursday.
In equity news, Royal Mail led the Stoxx 600 as the UK postal service said it would return £400m and upped its full-year earnings outlook, following a strong first half.
Thyssenkrupp shares climbed after the German conglomerate beat profit expectations and lifted its 2022 outlook.
UK manufacturing engineer Rotork slumped as it warned of supply chain pressures on revenues due to computer chip shortages.