Europe open: Stocks rise despite weak German data

22nd Aug 2024 07:41

(Sharecast News) - European stock markets advanced on Thursday morning, taking their cues from Wall Street and Asian indices overnight, despite weakening economic data from the continent's economic powerhouse Germany.

The pan-European Stoxx 600 index was up 0.3% early on, with moderate gains registered on most major indices across the region. The Stoxx 600 Index has now risen in seven of the past eight trading sessions, rising more than 3.2%.

US stocks edged higher on Wednesday, after minutes from the most recent Federal Reserve policy meeting and a downward revision to labour-market data cemented expectations for an interest-rate cut in September. Asian markets were also on the rise overnight, withe the Nikkei and Hang Seng putting in decent gains.

Attention will now shift to the Federal Reserve's economic symposium in Jackson Hole, Wyoming, on Friday with chairman Jerome Powell expected to speak on the central bank's current opinion of the US economy.

Back in Europe, figures from HCOB released early on revealed that the economic downturn in Germany deepened this month, with the manufacturing activity contracting more than expected while growth slowed in the services sector. The German composite purchasing managers' index fell to 48.5 in August, from 49.1 in July, missing the 49.2 consensus estimate.

Nevertheless, the composite PMI for the wider eurozone actually improved to 51.2 from 50.2, beating the 50.1 reading expected by analysts. Meanwhile, service and manufacturing-sector PMIs from the UK are due out later on Wednesday morning.

In corporate news, London-listed sports apparel and footwear retailer JD Sports Fashion was a high riser after returning to like-for-like growth in its second quarter, with its store rollout programme in North America and Europe providing a boost, as it maintained its full-year profit outlook.

Swiss insurance giant Swiss Re was also performing well after beating forecasts with second-quarter profits and reiterating guidance for the full year.

German banking group Deutsche Bank gained after reaching a deal with a large share of Postbank shareholders in a long-running legal case about the price paid for the rival bank during a 2008 takeover.