Europe close: Stocks mostly higher after strong GDP data

30th Jul 2024 16:42

(Sharecast News) - Stronger-than-expected economic growth across the eurozone helped propel stock markets higher on Tuesday, with most major indices across Europe making gains.

London's FTSE 100 was the only index to finish in the red, down 0.2%, with heavy losses from Diageo and Entain and mining stocks weighing on the benchmark.

Nevertheless, the pan-European Stoxx 600 index closed the day up 0.5% at 514.08, with indices in Frankfurt, Paris, Milan and Madrid rising strongly.

Economic activity across the eurozone was stronger than anticipated in the second quarter, as upside surprises to GDP growth in Spain and France offset an unexpected contraction in Germany.

Eurostat reported that eurozone GDP growth was steady at 0.3% in the three months to June, in line with the first quarter and ahead of the 0.2% increase expected by economists.

In other news, inflation data from Germany which surprised to the upside in July, according to data from the Federal Statistical Office. The annual change in the consumer price index picked up to 2.3%, surprising economists who had pencilled in no change from 2.2% the month before.

Diageo slumps in London

UK-listed Diageo slumped 5% as the drinks maker reported a drop in full-year organic operating profit, citing a weaker performance in Latin America and the Caribbean. Sector peers Remy Cointreau and Pernod Ricard were also in the red.

Mining stocks were also under the weather in London, with Anglo American, Glencore and Rio Tinto all finishing lower.

Heading the other way was UK wealth manager St James's Place which surged 25% after the company revealed plans to cut millions in costs, while Standard Chartered jumped 6% as the Asia-focused bank announced its biggest-ever share buyback, of $1.5bn, and raised its outlook in half-year results.

Elsewhere in Europe, Swiss chemicals company Clariant dropped 8% after downgraded its sales projections for the full year.

German manufacturing firm Fuchs gained 6.5% after reporting a 10% increase in first-half profits.