Europe midday: Shares flat as investors mull German survey data

14th May 2024 11:22

(Sharecast News) - European shares were flat on Tuesday as investors digested UK employment and German economic survey data, while on the corporate front shares in Delivery Hero surged by more than a fifth after it agreed to sell its Foodpanda delivery business in Taiwan for $950m to Uber.

The pan-European Stoxx 600 index barely moved the needle at 520.83, with regional bourses mixed. Britain's FTSE 100 bucked the trend, edging 0.1% higher to 8423.

UK unemployment nudged higher in March, official data showed on Tuesday, in line with expectations, despite wages continuing to grow.

According to the Office for National Statistics, the UK unemployment rate was estimated to be 4.3% in January to March, up from 4.2% previously.

Annual growth in employees' average regular earnings, excluding bonuses, was 6% in January to March. Including bonuses, growth held steady at 5.7%. Analysts had expected it to slow to 5.5%.

In Germany, investor sentiment kicked higher in May, a closely-watched survey showed on Tuesday, reaching a two-year high.

The latest ZEW Indicator of Economic Sentiment came in at 47.1, a 4.2-point increase on April.

The highest level since February 2022, when Russia invaded Ukraine, it was also better than expected, with most analysts forecasting a reading closer to 46.0.

In other equity news, shares in German arms manufacturer Rheinmetall fell after sales and profit in the first quarter missed expectations.

Anglo American fell after unveiling plans to focus on its copper, premium iron ore and crop nutrients operations, with plans to offload coal mining, nickel, platinum and De Beers diamond operations.

Vodafone gained after reporting better-than-expected full year cash flow, and a return to growth at its troubled German division.

Shares in Veolia rose after the French waste and water management company met first-quarter core profit expectations, buoyed by a strong performance in its water technologies unit and synergies with Suez.

Brenntag slumped as the German chemicals distributor missed first-quarter operating profit forecasts as it blamed price pressures and lower-than-expected demand in some markets and industries.

Reporting by Frank Prenesti for Sharecast.com