Europe midday: Shares lower as EZ GDP stalls

by | Dec 7, 2023

(Sharecast News) – European shares were lower on Thursday as investors digested data showing growth in the eurozone had stalled.
The pan-European Stoxx 600 index was off 0.12% at 468.12 with all regional bourses lower. Europe’s economy stalled in the third quarter, official data showed on Thursday, leaving it a risk of recession.

According to Eurostat, the statistical office of the European Union, GDP decreased by 0.1% in the Eurozone compared to the second quarter, when it inched up 0.1%.

The final figure matched Eurostat’s initial estimate and consensus.

Year-on-on year, GDP was 0.0% in both the Eurozone and across the wider bloc. Analysts had been expecting a marginal rise, of 0.1%, in the Eurozone.

EU-wide GDP was also flat annually compared to the second quarter, when it inched up 0.1%.

“European markets are under pressure, taking their cues from a softer session on Wall Street with the S&P 500 logging three straight negative sessions,” said Victoria Scholar, head of investment at Interactive Investor.

In other economic news, German industrial production unexpectedly fell by 0.4% in October compared to the previous month, according to official data published on Thursday.

The fall compared with expectations of a 0.2% rise, and was mainly due to a 0.6% decline in mechanical engineering sector output, the office said.

The data follows a shock fall in German industrial orders in October, down 3.7% on the previous month on a seasonally and calendar adjusted basis, data showed on Wednesday. Outside of manufacturing, energy output jumped by 7.1% and construction slid by 3.4%.

In equity news, Air France-KLM fell after JPMorgan cut the stock to underweight, from overweight and slashed its price target to €9.50 from €21.50. The move also hit Lufthansa and British Airways’ parent company IAG.

Reporting by Frank Prenesti for Sharecast.com

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