European markets extended losses at midday on Friday, with investors assessing an unexpected rise in UK retail sales and higher German producer prices.
The pan-European Stoxx 600 index was down 0.25% in early deals.
German producer prices in July recorded their highest ever increases both year-on-year and month-on-month as energy costs continued to soar due to the Ukraine war.
In the UK, retail sales unexpectedly rose in July, boosted by online shopping, according to figures released on Friday by the Office for National Statistics.
Retail sales were up 0.3% following a 0.2% fall in June, and versus expectations for a 0.2% decline. On the year, however, retail sales were 3.4% lower, compared to expectations for a 3.3% drop.
Sales volumes were 2.3% above their pre-coronavirus February 2020 levels, but down over the past year.
The figures showed that non-store retailing – namely online retailers – saw sales rise 4.8% on the month in July thanks to a range of promotions.
In equity news, Just Eat Takeaway surged after the online takeaway platform agreed to sell its 33% stake in Brazil’s iFood joint venture to Prosus for up to €1.8bn in cash.
Insulation and building materials company Kingspan jumped after hitting record revenues and posting a higher half-year profit.
French catering and food services group Sodexo fell after Jefferies cut the stock to “hold” from “buy” to factor in a cautious recessionary scenario over fiscal year 2023-2024.
Reporting by Frank Prenesti at Sharecast.com
