Europe midday: Stocks rally from morning torpor; Swatch gets timely boost

by | Jul 13, 2023

(Sharecast News) – European stocks rallied at midday as Industrial production across the Eurozone nudged higher in May, and investors digested weak data from China and the UK, along with Wednesday’s US inflation figure.
The pan-regional Stoxx 600 index was up 0.61%, with major bourses extending gains in the morning session. According to Eurostat, the statistical office of the European Union, industrial production rose by 0.2% on April, when it increased by 1.0%.

It is the second rise in a row since March’s 4.1% plunge, although analysts had forecast a marginally bigger increase, at 0.3%. Across the wider EU, production rose by 0.1% in May, compared to a 0.6% increase in April.

Overnight, data showed US consumer price inflation fell to an annualised 3% in June, below consensus expectations. Core inflation, which excludes volatile food and energy prices, fell to 4.8% annually, below a consensus projection of 5%.

Chinese exports during June recorded their heaviest fall in three years in June, slumping to a worse-than-expected 12.4% year-on-year, in another sign the world’s second biggest economy was in the doldrums and increasing the pressure for stimulus measures.

Meanwhile UK GDP data showed the British economy contracted by less than expected in May at 0.1%, but the housing market showed signs of a slowdown in June, reflected in a trading statement from builder Barratt which said it expected to complete fewer homes this year, hitting its share price along with sector peers Taylor Wimpey, Bellway and Persimmon.

The Bank of England is under pressure to resolve the cost-of-living crisis gripping Britain as inflation – which it called “transitory” two years ago to justify its decision to delay rate rises – remains stubbornly high.

In other equity news, Swatch Group reported record first-half sales growth as the last Covid restrictions in Asia were removed and strong trading in Europe and North America also boosted the watchmaker.

Dr Martens shares rose after the bootmaker said said trading since the start of the current financial year had been in line with expectations, adding that progress had been made rectifying the US warehousing fiasco that led to a series of profit warnings.

Diploma shares outperformed the market after the distribution specialist announced the purchase of DICSA for £170m and said current trading was in line with expectations as third-quarter revenues rose 9%.

Reporting by Frank Prenesti for

Related articles

Europe open: China property worries, oil price push stocks lower

Europe open: China property worries, oil price push stocks lower

(Sharecast News) - European shares opened lower on Monday as worries about China's troubled property sector continued with developer Evergrande saying it would not be able to complete a planned restructure, while a rising oil prices also weighed on sentiment. The...

Latest Articles

Asia report: Markets fall as Japan’s wholesale inflation rises

Asia report: Markets fall as Japan’s wholesale inflation rises

(Sharecast News) - Asia-Pacific markets experienced a downturn on Tuesday despite a broad rebound on Wall Street overnight. Contributing to the cautious mood in the region was new data from Japan indicating that wholesale inflation surged at its fastest rate in nearly...

Full-year profits slide at Close Brothers

Full-year profits slide at Close Brothers

(Sharecast News) - Close Brothers Group reported a decline in its full-year statutory operating profit before tax on Tuesday, to £112m from 2022's £232.8m. The FTSE 250 company said that figure included provisions of £114.6m related to Novitas, which it disclosed in...

Join our mailing list

Subscribe to our mailing list to receive regular updates!

No Fields Found.