Europe open: Shares edge lower on weak UK GDP, German trade data
By Frank Prenesti
Date: Friday 13 Dec 2024
(Sharecast News) - European shares opened lower on Friday as traders assessed a bigger-than-expected fall in UK GDP, while German exports also fell lower than forecasts.
The pan-regional Stoxx 600 index was down 0.09% at 518 points. The EuroStoxx50, which covers the eurozone, was up 0.33% to 4,982 in early trade.
Official data earlier showed the UK economy shrank by 0.1% in October, suggesting Finance Minister Rachel Reeves faces a bigger slowdown than anticipated.
The contraction followed a 0.1% decline in September, and versus expectations for 0.1% growth. Official figures showed that production output fell by 0.6% due to a decline in manufacturing and mining and quarrying output, following a fall of 0.5% in September.
Meanwhile in Germany, exports In October fell 2.8% - versus expectations of a 2% decline - and imports dropped 0.1% month on month on a seasonally adjusted basis, according to official data published on Friday.
Exports also decreased by 2.8% from October 2023 while imports rose by 1.7%, the Federal statistics office Destatis added.
Exported goods were worth €124.6bn in the month, while imports were worth €111.2bn. The foreign trade balance showed a surplus of €13.4bn, compared with €16.9bn in September and €18.9bn in October 2023.
In equity news, shares in UK-listed Tullow Oil fell after news that US oil and gas company Kosmos Energy was in "very preliminary" talks for an all-share takeover of the West Africa-focused explorer and producer.
Munich Re gained as the German reinsurer said it was targeting €6bn in net profit for next year.
Reporting by Frank Prenesti for Sharecast.com
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