Europe close: Stocks little changed after mixed US CPI, bank M&A in focus

11th Sep 2024 20:07

(Sharecast News) - European equity markets put in a mixed showing on Wednesday following the release of a somewhat mixed report on US consumer prices.

In focus as well, Democratic candidate Kamala Harris outperformed her rival Donald Trump in their debate overnight, according to most market commentary.

However, some analysts in the City termed the result inconclusive.

The Stoxx 600 index finished the session basically flat at 508.02. Spain's Ibex 35 outperformed, adding 0.67% to 11,278.90, whilst the German Dax put on 0.35% to 18,330.27.

France's Cac-40 and Italy's FTSE Mib on the other hand both dipped.

Economic data in focus

The US Department of Labor reported a very large decline in the year-on-year rate of CPI price gains in the US from 2.9% in July to 2.5% for August (consensus: 2.6%).

Core CPI however edged past forecasts, rising by 0.3% month-on-month (consensus: 0.2%).

Back in Europe ,UK industrial production unexpectedly slumped 0.8% in July after a 0.8% gain in June (consensus: +0.3%), while manufacturing production dropped 1.0% following 1.1% growth previously (consensus: +0.2%).

Meanwhile, the UK goods trade deficit widened to £20.0bn in July from £18.9bn in June, surprising economists who expected it to shrink to £18.1bn, while monthly GDP figures showed no growth again in July, missing the 0.2% expansion predicted by the market.

Market movers

Commerzbank shares surged 16% after Italian lender UniCredit took a 9% shareholding in the German bank as the government reduced its stake to 12%.

Tellingly perhaps, UniCredit shares edged up on the news.

Also in Frankfurt, Covestro rose on speculation that Abu Dhabi National Oil Company will make a formal offer to acquire the German plastic and chemicals manufacturer for approximately €14.4bn including debt, according to the Financial Times.

London-listed pest-control giant Rentokil Initial dropped 20% after scaling back its profit guidance for the full-year following weaker-than-expected summer trading in North America. The company, which had already reduced profit targets in July, said adjusted operating profits would be £50m lower than current expectations.

Also in the UK, Rightmove shares dipped after rejecting a £5.6bn takeover proposal from Australian peer REA Group, saying it undervalues the UK property platform's future prospects.

Santander Bank Polska was a heavy faller on the Stoxx 600, declining 9% after parent company Banco Santander sold a 5.2% stake in the Polish subsidiary. Shares in the Spanish bank rose 1%.