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Europe midday: Shares up as data indicates recession may be shallow

Published 09/01/2023, 12:01
Updated 09/01/2023, 12:12
© Reuters.  Europe midday: Shares up as data indicates recession may be shallow
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Sharecast - The pan-European Stoxx 600 was up 0.45% by 1145 GMT. Asia-Pacific markets were higher as Hong Kong and mainland China resumed quarantine-free travel over the weekend, ending a zero-Covid policy which kept borders effectively closed for almost three years.

Mining stocks were up on hopes the world’s second-biggest economy would start to recover with Antofagasta (LON:ANTO), Glencore (LON:GLEN) and Anglo American (LON:AAL) all making gains.

In Germany, industrial production rose a little more than expected in November, according to figures released on Monday by Destatis.

Production was up 0.2% on the month following a downwardly-revised 0.4% drop in October, coming in ahead of expectations for a 0.1% gain.

On the year, industrial production fell 0.4% in November following a 0.2% decline the month before.

Production in industry excluding energy and construction grew 0.5% in seasonally and calendar adjusted terms, compared with the previous month.

Markets also welcomed data that showed investor sentiment in the eurozone improved more than expected in January.

The Sentix investor sentiment index for the bloc rose to -17.5 from -21.0 in December. This marked the highest level since June 2022 and was a touch above consensus expectations for a reading of -18.0.

The expectations index improved to -15.8 in January from -22.0 the month before, while the current conditions gauge printed at -19.3 versus -20.0.

"Investors are still assuming a recession, but it is expected to be much milder. The sharp economic downturn, which was expected by the majority of investors by October 2022, is therefore off the table," Sentix said.

Meanwhile eurozone unemployment for November was unchanged at 6.5%.

In other equity news, shares in fashion and homeware online retailer N Brown Group gained as the company agreed to pay £49.5m in settlement of a legal case with insurance giant Allianz (ETR:ALVG) Insurance.

Reporting by Frank Prenesti for Sharecast.com

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