Europe open: Weak German data tempers sentiment as shares edge ahead
European stocks edged higher at the opening on Tuesday as weak German industrial output data kept a check on sentiment.
The pan-European STOXX 600 index rose 0.18%, with Germany’s DAX down 0.06%.
Data showed German industrial output fell unexpectedly in April driven by a lack of semiconductors, timber and other intermediate goods in another indication of supply bottlenecks holding back the country’s economic recovery.
The Federal Statistics Office said industrial output dropped 1% on the month after a downwardly revised increase of 2.2% in March. Analysts had been looking for a rise of 0.5%.
"The truth is markets seem to be bobbing along pretty happily until there is the next big short-term risk scare – a well-understood, or at least fairly static, macro picture for the time being keeping things on an even keel," said Markets.com analyst Neil Wilson.
"Inflation remains the big unknown but for now, bond yields are steady - US Treasury yields continue to look pretty calm around 1.55% - but the path for bond yields seems only higher this year. The question is one of timing and markets seem happy to wait until they get a clearer signal."
Wilson said investors would be eyeing Thursday's European Central Bank meeting and US CPI inflation print.
In equity news, shares in UK tobacco giant BAT rose 2% as the company increased its guidance for annual revenue growth as it attracted more non-combustible product customers and reported a solid performance for its tobacco brands.
Swiss contract drugmaker Lonza gained 3.74% after a Goldman Sachs upgrade to ‘buy’.
Dechra Pharmaceuticals rose after reporting that full-year revenue was set to be ahead of consensus expectations, as it continues to benefit from strong market fundamentals and lower costs.