European Shares Slip Ahead Of US Inflation Data

European stocks were subdued on Tuesday as the global coronavirus caseload surged past 187 million and investors turned their focus to U.S. inflation data for June, due later in the day, for additional cues about the likely timing of policy tightening by the Federal Reserve.

The pan European Stoxx 600 slipped 0.1 percent to 460.29 after climbing 0.7 percent on Monday. The German DAX slipped 0.1 percent and France’s CAC 40 index dropped 0.2 percent while the U.K.’s FTSE 100 was up 0.1 percent.

ING dropped half a percent. The Dutch bank has reached an agreement to transfer its Retail Banking operations in Austria to bank99, the bank of Österreichische Post, the Austrian postal services.

Finnish telecom equipment maker Nokia jumped 7.7 percent. Following a stronger-than-expected second quarter, the company said it will probably raise its guidance for the full year.

Banks gained ground in London as the Bank of England lifted the restrictions on dividend payouts that were introduced during the pandemic with immediate effect, citing the results of recent stress tests and lower-than-expected loan losses.

Barclays gained 0.7 percent and Standard Chartered rose 0.6 percent, while Lloyds Banking Group rallied nearly 2 percent.

Miners Anglo American and Rio Tinto rose about 1 percent each after data showed China’s exports grew much faster than expected in June.

Healthcare software and systems provider EMIS Group advanced 0.7 percent. The company said that trading for the first half ended June 30 has been slightly ahead of its expectations.

Retirement group Phoenix edged up slightly on news it would sell Ark Life Assurance Company to pensions group Irish Life for around £197m.

LVMH shares were little changed in Paris. Moët Hennessy, the Luxury Wines and Spirits Division of the luxury goods company, announced the formation of a 50/50 joint venture with Italian spirits company Campari Group to create a premium pan-European Wines & Spirits e-commerce player through Tannico.

Gerresheimer AG shares slumped 7 percent. The German drug delivery devices maker reported that its second-quarter net income attributable to shareholders was 28.13 million euros, slightly lower than last year’s 28.99 million euros.

In economic releases, Germany’s consumer price inflation eased in June for the first time in six months, latest data from Destatis confirmed.

The consumer price index rose 2.3 percent year-on-year following a 2.5 percent increase in May, which was the highest rate in nearly a decade.

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