Europe midday: Listless Stoxx struggles as investors eye Fed minutes

by | Aug 18, 2021

European stocks were flat at midday on Wednesday as investors tried to find positive direction against a backdrop of rising global Covid-19 cases.
The pan-regional Stoxx 600 index was up 0.12%, with major bourses struggling to get above the flatline. Sentiment has been tempered in recent days over concerns that increasing outbreaks of the Covid delta variant will stall the economic recovery.

Britain’s FTSE 100 fell into the red after official data showed UK inflation unexpectedly fell to the Bank of England’s 2% target last month. Germany’s DAX and France’s CAC 40 were also down.

UK consumer price inflation declined to 2% from 2.5% in June below consensus expectations of 2.3%. This marked the first easing inflation since February. Core inflation – which strips out food and energy – fell to 1.8% from 2.3%, coming in below consensus expectations of 2.0%.

Investors were also keeping an eye out for the US Federal Reserve’s minutes from the its July policy meeting later in the day, for hints on when it will start tapering its massive asset purchases programme.

In equity news, Danish brewer Carlsberg rose after lifting full-year earnings guidance and said beer volumes in key markets China and Russia had risen to “well above” pre-pandemic levels.

Swiss medical device maker Alcon jumped 11% to top the Stoxx after it lifted its full-year earnings forecast.

Online pharmacy Zur Rose fell despite reporting a rise in second quarter revenues.

Miners struggled, with BHP, Antofagasta, Rio Tinto, Anglo American and Glencore all weaker.

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