Europe open: Stoxx shrugs off weak US; TeamViewer surges on revenue beat

The pan-regional Stoxx 600 index was up 0.11% in early deals at 515.24. US stocks sold off sharply on Tuesday as bond yields hit a nine-month high on the back of stronger-than-expected economic data and renewed concerns about inflation.

The Dow finished 0.4% lower, while the S&P 500 and Nasdaq dropped 1.1% and 1.9% respectively, pulling back after two days of solid gains.

Weighing on sentiment was a jump in 10-year US Treasury yields, up 5.3 basis points at 4.689%, hitting levels not seen since last April ahead of the Treasury's auction of $39bn of 10-year notes after the close.

Investors will be eyeing the US ADP report for December later in the day while the Federal Reserve's December policy minutes will be out after markets close.

"A mixture of macro fears for inflation and concerns about what the next Trump presidency may hold are dominating markets as we move to the middle of the week," said XTB research director Kathleen Brooks.

"The sell off in stocks in the US was driven by strong economic data, including a rise in job openings and the highest level of the ISM services prices paid index since early 2023. This has rattled financial markets. On top of this, President-elect Trump doubled down on his tariff talk in a wide-ranging speech on Tuesday evening, eroding hopes that he will tread a more cautious path."

In economic news, German retail sales and industrial orders both fell unexpectedly in November, according to official data released on Wednesday.

Retail sales were down 0.6% in real terms compared with October, federal statistics office Destatis said. Analysts had forecast a 0.5% increase.

Industrial orders slumped 5.4% month on month on a seasonally and calendar adjusted basis against expectations of no change.

In equity news, shares in Shell fell as the oil and gas giant cut its liquefied natural gas production outlook for the fourth quarter of 2024 and warned trading results for its chemicals and oil products division were expected to be “significantly lower” compared to the third quarter.

Shares in Flutter were lower as the gambling outfit lowered earnings forecasts at its US operations as punters scored wins on their American football bets.

TeamViewer surged 14% after beating revenue estimates due to an unexpected boosted in new contracts at the end of 2024.

Reporting by Frank Prenesti for Sharecast.com