© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, November 10, 2021. REUTERS/Staff

By Anisha Sircar

European stocks were little changed on Thursday after concerns about U.S. inflation spike offset some relief around property developer China Evergrande and a slew of corporate earnings.

The pan-European was flat in morning trade after data on Wednesday showed U.S. consumer prices surged at the fastest pace since 1990, which could compel the Federal Reserve into faster policy tightening.

“There’s a great deal of concern about the rather insane hike in U.S. inflation – a 31-year-high isn’t something to be sniffed at,” said AJ Bell analyst Danni Hewson.

“It’s hard to see that markets think this would be the peak of inflation when you consider external influences, particularly supply bottlenecks and increased commodity prices, as the cost of living goes higher.”

U.S. data followed numbers from China where producer prices soared to a 26-year high as coal prices surged amid a power crunch.

Euro zone money markets brought forward bets for a European Central Bank rate hike, reflecting a higher shift in U.S. rate-rise expectations.

Supporting markets, however, China-exposed sectors including miners as well as construction and materials gained 1.7% and 1.2%, respectively, as troubled developer Evergrande averted a destabilising default at the last minute for the third time in the past month.

Swiss chemical company Sika jumped 8.5% to hit an all-time-high after agreeing to buy construction chemicals maker MBCC in a $6 billion deal.

Luxembourg-based ArcelorMittal (NYSE:) gained 2.7% after reporting its strongest quarter in more than a decade.

Further, Goldman Sachs (NYSE:) raised the 12-month price target for the benchmark STOXX 600 to 530 points from 520 points, saying European earnings have proven resilient to supply chain snags.

Profits of STOXX 600 companies are expected to jump 60.7% in the third quarter to 104.4 billion euros ($120.7 billion) from a year earlier, latest Refinitiv data showed, a slight improvement from last week’s 57.2% estimate.

European retail property firms Klepierre, Britain’s Shaftesbury and Capital & Counties gained between 0.1% and 1.4% after J.P.Morgan upgraded the stocks, stating the worst of COVID-19 was “behind us”.

However, overall retail stocks were among the biggest drags, led by British discount retailer B&M, which dropped 6.4% after posting lower first-half core earnings.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here