Europe open: Stoxx up, UK gambling shares slump on tax threat
European shares edged ahead at the open on Monday after much hoped for detail on China stimulus measures failed to materialise on the weekend and UK gambling stocks were slumped on a report the new Labour government was about to hit their hefty profits with a windfall tax.
The pan-European Stoxx 600 index was up 0.08% at 522 points in early deals.
China data on Monday showed consumer inflation unexpectedly eased in September, signalling weak domestic demand. Traders had been hoping that weekend news conference would shed more light on plans to ign ite the world’s second-largest economy but were none the wiser after the event.
Attention will also turn to an interest rate decision from the European Central Bank on Thursday, with policy makers expected to cut for a third time.
‘’Stocks are largely set to tread water at the start of the week as investors look for a sense of direction as US earnings season builds, and the latest stimulus plan from China comes under scrutiny," said Susannah Streeter, head of money and markets, at Hargreaves Lansdown.
"The FTSE 100 has opened lower, following a volatile session for Chinese stocks after another underwhelming announcement from authorities about further steps to boost the economy."
"Although investors have largely welcomed the reiteration that more support would be on the way for consumers and the property sector, the lack of detail about how this would be achieved and the numbers involved, held back gains. Oil prices also eased off, with Brent Crude falling back to $78 a barrel, as hopes for a faster rebound of demand in China dissipate."
In equity news, bookmaker Entain slumped 13% and Flutter was down 6% on media reports that the UK government is considering a £3bn levy to plug a hole in Britain’s parlous finances three months after the Conservative Party’s 14-year stewardship of the economy came to an end with an electoral wipeout.
Reporting by Frank Prenesti for Sharecast.com