Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

European Stocks Higher; U.K. GDP, French Consumer Spending Impress

Stock Markets Sep 30, 2021 09:24
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse 

Investing.com - European stock markets traded higher Thursday, stabilizing after the sharp losses earlier this week, helped by stronger than expected U.K. second-quarter growth and a sharp jump in French consumer spending.

At 4:05 AM ET (0805 GMT), the DAX in Germany traded 0.4% higher, the CAC 40 in France rose 0.8% and the U.K.’s FTSE 100 climbed 0.6%.

European equity indices are still recovering from Tuesday’s rout, prompted by higher U.S. bond yields, which saw the DAX and CAC 40 drop over 2% in Europe and the Nasdaq Composite slump 2.8%, its largest selloff since March, on Wall Street.

Helping the tone were the latest revision to U.K. quarterly GDP figures, which showed that the U.K. economy grew 5.5% in the second quarter, a sharp improvement from the 1.6% fall the previous quarter, with government spending, exports and business investment all stronger than previously estimated. However, the data is now three months old. More up-to-date numbers released on Thursday showed house price growth almost came to a standstill in August.

French consumer spending rose 1.0% month-on-month in August, substantially above July’s drop of 2.4%, while the country’s annual inflation rate rose to 2.7% in September, slightly less than expected but still its highest rate in nearly a decade. Germany's jobless numbers, meanwhile, fell by a seasonally-adjusted 30,000 this month, roughly in line with expectations. 

In corporate news, Hennes & Mauritz (ST:HMb) stock rose 0.6% after the Swedish retailer reported a bigger-than-expected jump in quarterly pretax profit to above pre-pandemic levels, while Diageo (LON:DGE) stock gained 2.7% with the spirits maker saying its new financial year was off to a "strong start" and forecast a boost to operating margins.

Boohoo (LON:BOOH) stock slumped 9.7% after the online fashion retailer warned that freight inflation and higher wages would hit full-year profit margins. It also revised down its sales growth guidance for the year, suggesting that the reopening of rivals' stores and the hangover from a scandal over low pay in its supply chain have hurt its business.

More broadly, doubts remain about the strength of China’s economic expansion. The country’s factory activity contracted in September for the first time since Covid-19 began in 2020, with its manufacturing purchasing managers index falling to 49.6 in September, from 50.1 in August.

Also of concern was a report from Reuters that some of China Evergrande Group's (HK:3333) offshore bondholders have not received interest payments due by the end of Wednesday New York time, meaning that the highly indebted property giant has missed its second debt obligation this month.

Crude prices edged higher despite official figures showing an unexpected rise in U.S. inventories as production in the Gulf of Mexico returned to near-normal. U.S. crude inventories rose by 4.6 million barrels last week, data from the Energy Information Administration showed, compared with expectations for a 1.7 million-barrel drop.

By 4:05 AM ET, U.S. crude futures traded 0.5% higher at $75.19 a barrel, while Brent rose 0.4% to $78.39.

Additionally, gold futures rose 0.6% to $1,733.15/oz, while EUR/USD traded flat at 1.1595.

European Stocks Higher; U.K. GDP, French Consumer Spending Impress
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email