Europe open: Stoxx flat on US data; JMat slumps, Auto Trader accelerates
European stocks were flat at the opening on Thursday as investors digested a torrent of corporate earnings and US data showing a spike in inflation.
The pan-European Stoxx 600 had barely moved the needle in early deals. In the US, official data showed US consumer prices had risen at their fastest pace in three decades, prompting fears that the Federal Reserve could tighten policy at a faster rate.
In Asia, troubled developer China Evergrande managed to avert a loan default at the last minute for the third time in the past month.
"We’d been suggesting a pullback was likely for the major US markets; so far it’s only mild but if inflation fears lead to expectations the Fed will tighten policy then stocks could have further to decline. As far as European markets go, watch cases on the continent and the political appetite to reimpose restrictions," said Neil Wilson at Markets.com.
In equity news, shares in Auto Trader topped the Stoxx after the company said it has achieved its highest-ever interim revenue and profits following solid performances from both the trade and retail segments.
Swiss chemical company Sika soared by 8% after agreeing to buy construction chemicals maker MBCC in a $6bn deal.
Johnson Matthey shares slumped by almost 19% after the company announced the departure of its chief executive, alongside plans to sell its battery materials business, as it warned the trading outlook for the full year was towards the lower end of market expectations.
Aker BP shares fell 10.7% after BP and Aker said they were exploring a possible sale of a 5% stake in the Norwegian oil and gas joint venture after its shares hit an all-time high this week.
UK discount retailer B&M dropped 4.9% after posting lower first-half core earnings.