Europe open: Stocks weaker amid UK data; Zealand Pharma soars

21st Jun 2024 08:03

(Sharecast News) - European stocks were weaker at the open on Friday as investors digested data from the UK that showed a rise in retail sales last month, but also government borrowing rising to its highest level since 1961.

The Stoxx 600 index was down 0.3% in early deals at 517.58.

British retail sales volumes rose 2.9% in May, a big gain from the 1.8% fall in April when heavy rain affected shopping footfall.

Meanwhile, public debt rose last month to its highest as a share of the economy since 1961, meaning while voters could see a change of government after the July 4 election, they will still feel the same financial pain in their hip pocket.

Public sector net debt, excluding state-controlled banks, rose to £2.742trln or 99.8% of gross domestic product last month, up from 96.1% a year earlier, the Office for National Statistics said.

Government borrowing came in at £15bn, just below economists median forecast of £15.7bn.

In equity news, Zealand Pharma roared ahead by 25% as an early-stage study showed the Danish company's weight-loss drug helped reduce weight by an average 8.6% after 16 weekly doses.

Shares in British soft drinks maker Britvic surged almost 14% as the company rejected a revised, unsolicited, possible cash offer from Carlsberg Group, saying it "significantly undervalued" the group and its prospects.

Reporting by Frank Prenesti for Sharecast.com