Europe open: Shares make strong start despite Asia worries
European stocks opened strongly on Wednesday despite Asian economies reporting a slowdown in factory activity amid supply disruption caused by surging Covid cases.
The pan-European Stoxx 600 was up 0.73%, with all major regional bourses also higher.
Asian shares recovered from earlier losses overnight after data showed factory activity across the region slowed in August as a resurgence in coronavirus cases disrupted supply chains.
The Caixin/Markit manufacturing Purchasing Managers’ Index for August came in at 49.2 on Wednesday, below the 50 mark that separates expansion from contraction.
It came after the official manufacturing PMI released Tuesday showed slowing Chinese factory activity growth in August, coming in at 50.1 against July’s reading of 50.4.
Investors are awaiting manufacturing activity and unemployment data for the euro zone later in the day.
French spirits maker Pernod Ricard rose 2.6% after it posted a stronger-than-expected rise in full-year operating profit, driven by a strong rebound in demand in China and the US.
UK travel and high street retailer WH Smith fell to the bottom of the Stoxx with a 5% decline as it warned that 2022 profits would be at the lower end of expectations.
Supermarket group Carrefour slid 5.2% as luxury goods billionaire Bernard Arnault sold the 5.7% stake he owned in the company.