Europe open: Stoxx weak ahead of ECB; Virgin surges on takeover

7th Mar 2024 08:27

(Sharecast News) - European markets were in the doldrums at the open on Thursday, with investors awaiting the outcome of the European Central Bank's policy meeting later in the day, while Virgin Money was in the spotlight after a £2.9bn takeover by Britain's Nationwide Building Society.

The pan-European Stoxx 600 index was down 0.36% at 496.41 in early deals with all major bourses in the red.

Economists expect the ECB to hold rates at a record 4% with the first cut tipped for June as inflation falls.

Asia stocks rose on comments from US Federal Reserve Chair Jerome Powell overnight reiterating his position that while the central bank could start cutting rates, it was still "not immediately ready".

In economic news, UK house prices increased for the fifth month in a row, with the average up 0.4% in February, marking an increase of 1.7% year-on-year, according to the Halifax House Price Index.

China reported a sharply better-than-expected rise in exports for the first two months of the year, according to official figures published on Thursday.

Exports surged 7.1% in January and February on an annual basis, said the General Administration of Customs - hammering estimates of a 1.9% rise.

In equity news, Virgin Money shares surged 36% as Nationwide swooped to swallow the challenger bank in a surprise move.

Rentokil and ITV were also both up on the back on results.

Shares in fashion brand Hugo Boss slumped after a gloomy outlook for 2024 from CEO Daniel Grieder.

Reporting by Frank Prenesti for Sharecast.com