European stocks fell in cautious trade on Wednesday, as rising oil prices and weak regional data fueled worries about inflation and slowing global growth. Investors also awaited key U.S. inflation data later in the day for directional cues.
Data showed earlier today that Eurozone industrial production fell more than expected in July.
Industrial output fell 1.1 percent month-on-month, the Eurostat said in its latest release, versus -0.7 percent expected and a 0.4 percent increase reported in June.
Elsewhere, data out of U.K. showed the British economy shrank at the fastest pace in seven months.
Real gross domestic product fell 0.5 percent in July, offsetting June’s 0.5 percent increase, the Office for National Statistics reported. The latest figure was worse than economists’ forecast of 0.2 percent decline.
The pan European STOXX 600 was down 0.6 percent at 452.56 after declining 0.2 percent on Tuesday.
The German DAX and France’s CAC 40 both were down around half a percent while the U.K.’s FTSE 100 slipped 0.1 percent.
Zara owner Inditex, the world’s biggest fashion retailer, tumbled 3.6 percent despite reporting a 40 percent jump in half-year net profit.
Aviva rallied 2 percent after the British insurer said it is exiting its Singlife joint venture, selling its 25.9 percent stake in Singapore Life Holdings and two debt instruments pounds to Sumitomo Life for a combined 800 million pounds ($996.96 million).
BP Plc fell about 1 percent after CEO Bernard Looney resigned effective immediately over personal relationships with colleagues.
Hunting jumped 3.7 percent. The engineering company confirmed its outlook for fiscal 2023 and 2024, and set targets till the year 2030, expecting growth.
French lender Societe Generale was rising half a percent after it named Bruno Delas as chief information officer to replace Carlos Goncalves, who is leaving the bank.
Automaker Renault jumped 2.6 percent after the European Commission, the executive arm of the European Union, launched an investigation into subsidies given to electric vehicle makers in China.
European Commission President Ursula von der Leyen said Europe was “open to competition but not for a race to the bottom.”
Market Analysis
European Shares Decline On Inflation, Growth Worries
2023-09-13 09:45:36
