Europe open: Shares up, but markets wary after China data
European shares were slightly higher at the open on Monday, although sentiment was tempered after China unexpectedly cut a key interest rate.
The pan-European STOXX 600 index rose 0.2% in early deals. China's central bank on Monday unexpectedly cut a major interest rate in an attempt to bolster an economy that is struggling to grow amid repeated Covid lockdowns and a property downturn.
The People’s Bank of China trimmed its medium-term lending rate by 10 basis points to 2.75%. Analysts had forecast no change.
“China’s economy is suffering from ongoing Covid lockdowns and a fragile property market. Developers reported lower rates of investment into new building projects whilst sales of new homes dived by 31% in the year to end-July,” said Hargreaves Lansdown fund manager Steve Clayton.
Official data released on Monday showed consumer and factory activity was weaker than forecast as the pace of the country’s economic recovery continued to be sluggish.
Retail sales rose 2.7% year on year in July against forecasts of 5% while industrial production was 3.8% higher, against expectations of 4.6%.
In equity news, AstraZeneca gained 2.6% after the drugmaker said its Enhurtu cancer drug, developed with Japan's Daiichi Sankyo, delayed the progression of a form of advanced breast cancer in previously treated patients.
HelloFresh surged 9% after the German meal-kit maker reported better-than-expected quarterly results.
Reporting by Frank Prenesti at Sharecast.com