European Shares Mixed Ahead Of US Inflation Data

marketopen 011519 13oct21 lt

European stocks traded mixed on Wednesday, with U.K. stocks declining as strong GDP data fueled rate hike bets.

Sentiment was underpinned elsewhere across Europe after China released positive trade figures.

Chinese export growth unexpectedly accelerated in September, providing some relief to those worried about a slowdown in the world's second-largest economy.

As concerns mount over high global inflation, traders await U.S. consumer price data later in the day for further direction.

Closer home, Eurostat data released earlier in the day showed Eurozone industrial production fell in August due to supply-chain bottlenecks and slowing global trade.

The pan European Stoxx 600 rose half a percent to 459.65 after ending flat with a negative bias on Tuesday.

The German DAX climbed 0.8 percent and France's CAC 40 index edged up 0.2 percent while the U.K.s FTSE 100 was down 0.2 percent.

U.K. gross domestic product grew 0.4 percent month-on-month in August, but slightly slower than the economists' forecast of 0.5 percent.

GDP growth for July has been revised from 0.1 percent growth to a 0.1 percent fall, mainly because of downwardly revised data for the manufacture of motor vehicles, oil and gas, and improvements to how health output is measured.

In stock-specific news, online food ordering company Just Eat Takeaway.com N.V. tumbled 3.3 percent after delivering weaker-than-expected third-quarter orders.

SAP jumped 4.7 percent after the German software group said it is seeing strong growth in current cloud backlog across its cloud portfolio.

Hannover Re declined 1.2 percent. The re-insurance company said it is committing to achieve net zero emissions in business operations by 2030 and in its reinsurance portfolio and investments by 2050.

Apple suppliers STMicroelectronics, Infineon Technologies and AMS were moving higher despite a Bloomberg report that Apple Inc. is likely to slash production of its iPhone 13 by as many as 10 million units due to the global chip shortage.

Luxury goods maker LVMH rose 1.6 percent after announcing improved earnings for the third quarter, with 40 percent organic revenue growth across its brands compared to 2020.

Man Group shares jumped 7.3 percent in London. The active management business reported a further increase in funds under management in the third quarter, driven by very strong net inflows and solid investment performance.

Barratt Developments gained nearly 6 percent. While issuing a trading update for the period from 1 July to 10 October 2021, the housebuilder said the positive start to the new fiscal year has continued in recent weeks with private reservations remaining strong. The Group remains on track to deliver both its fiscal 2022 and medium term targets.

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