Europe close: Stocks little changed despite better-than-expected US price data
By Alexander Bueso
Date: Thursday 11 Aug 2022
(Sharecast News) - European shares finished on a mixed note on Thursday despite the release of better-than-expected producer price data for July on the other side of the Pond.
"While US inflation appears to be easing, after today's PPI numbers followed on from yesterday's weaker CPI number, falling 0.5% on a monthly basis, the prospect of something similar happening in Europe appears to be harder to envisage, and while broader markets are just about hanging onto gains it's been hard going," said Michael Hewson, chief market analyst at CMC Markets UK.
The pan-European Stoxx 600 index was up by just 0.06% to 440.16, while Germany's Dax drifted 0.05% lower to 13,694.51.
Milan's FTSE Mibtel on the other hand added 0.69% to 22,858.18.
The euro and Italian 10-year government bond yields were a tad higher while front-dated Brent crude oil climbed %2.25 to $99.65 a barrel on the ICE.
In the background, some market commentary was also referencing fears of more shortages in the Continent's biggest economy hit shortages as low water levels on Germany's mighty Rhine river threatened traffic of vital goods such as oil, grain and coal.
A searing summer had seen water levels on the key waterway drop so drastically that barges were carrying smaller loads than usual, further choking supply chains and hampering Germany's efforts to cut reliance on Russian energy imports.
In equity news, insurer Aegon jumped 9%, as it raised its forecasts for full-year operating capital generation and 2021-2023 free cash flow.
Ladbrokes owner Entain gained 4% as the gambling firm announced a new drive to expand into Central & Eastern Europe (CEE) on Thursday and the acquisition of a Croatian sportsbook operator, as it posted a rise in first-half net gaming revenue.
Bottling group Coca-Cola HBC rose 3% as it said revenues had grown in the six months ended 1 July but contracting margins had led to a drop in interim profits.
Zurich Insurance Group edged up as it reported a better-than-expected rise in operating profit in the first half.
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