European stocks retreated on Thursday as investors weighed up a slowing of growth in China and mulled dovish comments from Federal Reserve Chairman Jerome Powell.
China’s gross domestic product rose 7.9 percent year-on-year in the second quarter, official data showed. That was slightly lower than forecasts. The GDP print beat forecasts on a quarterly basis.
The dollar edged back as Powell’s testimony continues in front of the Senate Committee.
Powell told the U.S. House Financial Services Committee on Wednesday that the U.S. economy is “a ways off” from where it needs to be for the Fed to tighten its easy monetary policy.
The pan European Stoxx 600 dropped 0.4 percent to 458.59 after ending flat with a negative bias on Wednesday. The German DAX shed 0.7 percent, France’s CAC 40 index gave up 0.4 percent and the U.K.’s FTSE 100 was down 0.2 percent.
The British pound dropped against the dollar after Bank of England Governor Andrew Bailey told BusinessLive he won’t be rushed into making decisions on raising interest rates, despite rising inflation pressures.
German energy group Siemens Energy plunged almost 10 percent after the company said it expects to miss its margin guidance for the full fiscal year.
Its Spanish subsidiary Siemens Gamesa Renewable Energy plummeted 13.7 percent after saying it expects a fiscal 2021 loss due to a sharp increase in raw material prices.
Medical and safety technology provider Draegerwerk AG tumbled 5.3 percent after its second-quarter preliminary EBIT declined to 80 million euros from last year’s 102 million euros, due to the lower gross margin and higher functional expenses.
Total Energies SE dropped 1.3 percent, BP Plc lost 2.2 percent and Royal Dutch Shell gave up 1.5 percent as oil extended overnight losses amid news that oil producers came to a compromise about supply. Oil prices were also pressured by data showing a drop in U.S. gasoline demand.
Cybersecurity firm Avast jumped 14.3 percent after the company confirmed it was in advanced merger talks with US peer NortonLifeLock.
Credit data firm Experian gained 5 percent after raising its full-year guidance.
Just Eat Takeaway.com tumbled 3.3 percent. The online food ordering company said that adjusted EBITDA losses, mainly caused by U.S. and Canadian fee caps, and the investment program, have now peaked.
In economic releases, the U.K. employment increased in three months to May signaling that the labor market continues to recover.
There was a quarterly increase in the employment rate of 0.1 percentage points to 74.8 percent, the Office for National Statistics said.
At the same time, the ILO unemployment rate decreased 0.2 percentage points to 4.8 percent. In three months to April, the jobless rate was 4.7 percent.
Market Analysis
European Shares Retreat In Cautious Trade
2021-07-15 10:00:41
