European markets were treading water at midday on Wednesday as investors digested weak German business sentiment data and eyed a key meeting of US Federal Reserve officials on Thursday and Friday.
The pan-European Stoxx 600 was 0.14% higher in early trade with all major regional bourses in green territory. Germany’s DAX was lower after a survey by the Ifo Institute showed business sentiment deteriorated again in August amid supply chain issues.
The business climate index fell to 99.4 from 100.7 in July, missing expectations for a reading of 100.4.
The current situation index came in at 101.4 in August compared to 100.4 the month before, while the expectations gauge declined to 97.5 from 101.0.
This contrasted with economic data that showed the economy grew more than initially estimated in the second quarter as coronavirus restrictions eased, according to figures released on Tuesday by Destatis.
Investor focus remains on the Fed’s Jackson Hole symposium, with investors looking for any sign of plans to taper the central bank’s bond-buying program. Fed chair Jerome Powell will deliver a speech on Friday.
In equity news, shares in builders merchant supplier Grafton were up 3.28% as the company reported record interim profits and reinstated its dividend on the back of a recovery in construction.
Stadler Rail climbed after increasing first-half net profit and confirming its full-year outlook.
Swedish radiation therapy equipment manufacturer Elekta slid more than 4.43% after missing first-quarter operating profit expectations.
German real estate investor fell to the bottom of the Stoxx after reporting a fall in first-half net rental income of €458m from €502m as a result of disposals.
