Europe open: Shares up ahead of US data; Eyes on VW's $5bn electric venture

26th Jun 2024 08:05

(Sharecast News) - European stocks opened higher on Wednesday as investors awaited US inflation data later in the week and digested Volkswagen's $5bn investment in US electric car maker Rivian.

The pan-regional Stoxx 600 index was up 0.41% to 519 in early deals with all major European bourses higher. France's CAC 40 was up 0.46% to 7,697 points ahead of the first round of national elections on Sunday with polling showing far-right parties ahead.

In economic news, a closely followed gauge of consumer sentiment in Germany unexpectedly fell further into negative territory, declining for the first time in five months.

The GfK's forward-looking Consumer Confidence Survey for July fell to -21.8 from a downwardly revised -21.0 the month before, missing economists' estimates for an improvement to -18.9.

In equity news, shares in Volkswagen Group fell back after a surge on Tuesday as the auto manufacturer said it would invest up to $5bn in US electric-vehicle maker Rivian as part of a new joint venture.

Anglo American shares rose despite its De Beers diamond unit reporting another dip in sales as it warned of a "protracted" recovery in demand.

In what is generally a quieter period for rough diamond sales, De Beers' fifth sales cycle generated $315m, down from $383m in the fourth cycle and $446m in the third. However, this was also down from $456m in the fifth cycle of 2023.

Liontrust Asset Management fell 2.5% after reporting a 23% drop in annual profit and net outflows of £6.1bn.

Royal Mail owner IDS gained as EP Group, owned by the billionaire Daniel Kretinksy, published its formal takeover offer.

Reporting by Frank Prenesti for Sharecast.com