Europe open: Shares up as investors mull UK GDP; JD Sports in fashion

28th Mar 2024 08:41

(Sharecast News) - European shares opened higher on Thursday ahead of the Easter break as investors mulled UK GDP data confirming the economy entered recession last year and a handful of corporate updates.

The pan-regional Stoxx 600 index was up 0.13% in early deals at 512.44.

Official UK figures showed that GDP contracted by 0.3% in the last three months of the year, unrevised from an earlier estimate. This followed a 0.1% contraction in the period from July to September.

In Germany, data showed employment was slightly higher in February, with statistics agency Destatis reporting a "slight upward trend", with the number of people in work up 14,000 last month, up 0.4% on an annual basis.

The business climate in the retail sector meanwhile "brightened noticeably in March," according to a survey from the Ifo Institute. However this contrasted with figures released on Thursday showing retail sales unexpectedly fell in February,, quashing hopes that private consumption could help Europe's largest economy to recover in the first quarter.

Retail sales decreased by 1.9% compared with the previous month in real terms. Analysts polled by Reuters had predicted a 0.3% increase in February.

In equity markets, Spirent Communications surged after Keysight Technologies reached a deal to buy the company for £1.16bn, outbidding US peer Viavi Solutions, which had already agreed to buy the telecoms group earlier this month.

Spirent said it is now recommending a 201.5p-per-share offer from Keysight, which represents a 26.5p or 15% premium to Viavi's offer.

JD Sports Fashion was also a major gainer after saying it expects full-year profits to be within guidance of £915m to £935m. It said the current year would be "challenging" due to less product innovation and more discounting, but expects sales to pick up on the back of the Paris Olympics and European football finals in the summer.

Reporting by Frank Prenesti for Sharecast.com