Europe open: Shares make lacklustre start despite Asia gains

The pan-European Stoxx 600 index was flat in early trade with most major bourses dipping into the red. Investors and traders are looking for any new glimmer of an economic recovery as they hunt for equity bargains.

“Attention is now slowly turning towards beaten down stocks and sectors which could stage something of a recovery in the post-pandemic world,” said interactive investor analyst Richard Hunter.

“Particular focus will remain on the likes of the oil and banking sectors, tourism and travel including airlines and hotels, as well as leisure sectors such as pubs and restaurants.”

Eyes this afternoon will be on US inflation data, where the headline figure is expected to fall form 0.4% to 0.3% month-on-month.

This will be followed by an appearance from Federal Reserve chair Jerome Powell, with investors looking for a view on the Biden administration’s American Rescue Plan, and the implications for monetary policy going forwards.

In equity news, shares in paper and packaging giant Smurfit Kappa rose after it posted forecast-beating final earnings, boosted by strong demand in Europe and America.

Grenke shares gained 13% after the resignation of its chief operating officer on Monday.

Dutch Bank ABN Amro shares fell even as the company reported a better-than-expected fourth-quarter net profit.

German conglomerate Thyssenkrupp added 5.8% after it raised its full-year outlook on the back of higher demand.

Shipping line Maersk was down 5.6% despite forecasting a surge in demand for container shipping that would boost first quarter earnings.

Shares in Swedish sports product company Thule Group rose 9.23% as the company reported a rise in fourth quarter sales driven by higher demand.

Shares in drinks giant Heineken fell as the company announced plans to cut about 8,000 jobs, in an effort to restore operating margins to pre-pandemic levels after a sharp decline in profit because of coronavirus restrictions.