Europe midday: Stoxx pares losses as eyes turn to China news conference

11th Oct 2024 11:36

(Sharecast News) - European markets were slightly lower on Friday as investors digested UK GDP data and looked ahead to widely expected fresh stimulus measures from China.

The pan-regional Stoxx 600 index had pared early losses to be 0.09% down 519.54 with all major markets lower.

On the economics front, the UK economy returned to growth in August, according to official figures. GDP rose 0.2% following no growth in June and July, in line with economists' expectations.

Services output grew 0.1% in August following an increase of 0.1% in July, while production output rose 0.5% following a revised 0.7% decline the month before. Output in construction was up 0.4% in August following a 0.4% drop In July.

In Germany, the inflation rate fell to 1.6% in September on an annualised basis and down from the 1.9% reported in August.

Meanwhile, China's Ministry of Finance is scheduled to hold a news conference on Saturday, with analysts expecting new stimulus measures to boost the country's ailing economy.

"There are a range of opinions as to the potential size of any fiscal injection, ranging from anywhere between two and ten trillion yuan. The market is likely to be disappointed should the number be on the low side," said Hargreaves Lansdown analyst Derren Nathan.

In equity news shares in Sainsbury's fell as its biggest shareholder, Qatar Investment Authority, placed 109m shares in the supermarket chain.

BP edged lower as it followed sector rival Shell and said it expected third-quarter realised refining margins to hit operating profit by $0.4bn to $0.6bn and warned its oil trading result would be weak as it felt the impact of lower crude prices.

Reporting by Frank Prenesti for Sharecast.com