Europe open: Shares up as investors mull UK GDP, France consumer spending
European stocks opened higher on Thursday as investors digested a weak China manufacturing survey and positive data from the UK and France.
The pan-regional Stoxx 600 index rose 0.76% in early trade. Britain’s FTSE 100 was up 0.57% after data showed the UK economy grew more than initially estimated in the second quarter, according to figures released on Thursday by the Office for National Statistics.
The economy expanded by 5.5% between April and June on a quarterly basis, up from a preliminary estimate of 4.8% growth. This left GDP 3.3% below pre-pandemic levels, up from a previous estimate of 4.4% below.
Asia shares were mixed overnight as investors mulled Chinese factory activity data for September.
China’s official manufacturing Purchasing Managers’ Index for September came in at 49.6, below expectations for a reading of 50.1. A PMI reading below 50 represents contraction while those above signify expansion.
Meanwhile France’s CAC index gained 0.64% as French consumer spending rose by 1% in August from the previous month, after falling 2.4% in July.
In equity news, shares in Swedish cloud communication services provider Sinch rose 4% to thre top of the Stoxx after the company agreed to buy cloud-based email delivery platform Pathwire in a cash-and-stock deal worth about $1.9bn.
Compatriot H&M rose 1.9% after it reported a bigger-than-expected jump in quarterly pretax profit as shoppers returned to stores.
UK spirits maker Diageo gained after it forecast a boost to operating margins as people opt for premium brands.
British online fast-fashion retailer Boohoo tumbled 10.8% as it warned that freight inflation and higher wages for its distribution centre workers would impact full-year profit margins.
Belgian retailer Colruyt fell 8.42% after lowering its full-year guidance on Wednesday.
Virgin Money lost ground after saying it would close almost one-fifth of its branches and cut office space as customers increasingly move online during the pandemic.
Tritax Big Box fell as the company said it had raised around £300m in a placing, subscription and retail offer as it looks to accelerate its development plan.