European Equities Close Lower in Cautious Trading
By Investors Hub
European stocks have edged lower in cautious trading on Thursday after China reported unexpectedly weak data, with both industrial output and retail sales growth coming in below estimates. Weak data from Japan and Australia also added to signs of weak overall economic growth.
Closer to home, Germany’s economy expanded modestly in the third quarter, supported by consumption, and thus avoided entering a widely expected technical recession.
German gross domestic product grew a seasonally and calendar adjusted 0.1 percent from the previous three months, provisional data from the statistical office Destatis showed, defying economists’ expectations for a 0.1 percent decline. The contraction in the second quarter was revised to 0.2 percent from 0.1 percent.
While the French CAC 40 Index has edged down by 0.1 percent, the German DAX Index and the U.K.?s FTSE 100 Index are down by 0.3 percent and 0.4 percent, respectively.
Private equity company 3i group has slumped despite the company reporting “good momentum” across its portfolio in its half-year results.
Daimler shares has also tumbled after the automaker said it would cut jobs and save more than ?1 billion (US$1.1 billion) by the end of 2022.
Utility RWE has also moved to the downside despite reporting a rise in nine-month earnings and lifting its 2019 guidance.
Consumer goods maker Henkel AG & Co. KGaA has also dropped after its third quarter earnings declined 9.4 percent.
On the other hand, Luxury brand Burberry has jumped after the company reported higher pretax profit and revenue for its first fiscal half.
Bouygues has also risen. The telecommunications, media and construction company reported that its nine-month net profit increased to 848 million euros from last year’s 771 million euros.
Electric utility EDF has also moved notably higher after reporting a rise in nine-month sales and confirming its FY19 and FY20 guidance.