European shares muted as China data rekindles economic worries

Shares of Hays Plc gained 0.6% after the British recruitment agency reported a rise in its second-quarter net fees. Investors also looked forward to U.S. earnings with Goldman Sachs and Morgan Stanley expected to report later in the day.

European shares wavered on Tuesday, as gains in industrials were eclipsed by investors' fears of an economic slowdown after China posted its weakest annual economic growth in nearly half a century.

The pan-European STOXX 600 was flat at 0815 GMT, after hitting its highest level in nine months in the previous session. Asian shares and U.S. futures dipped after China's economic growth in 2022 slumped as the fourth quarter was hit hard by strict COVID-19 curbs and a property market slump, raising pressure on policymakers to unveil more stimulus this year.

China-exposed financials HSBC and Prudential fell 1% and 0.4%, respectively. Economy-sensitive consumer staples such as Unilever and Danone fell more than 1% each.

Online retail platform THG dropped 8% on warning its full-year revenue will miss target. Shares of Hays Plc gained 0.6% after the British recruitment agency reported a rise in its second-quarter net fees.

Investors also looked forward to U.S. earnings with Goldman Sachs and Morgan Stanley expected to report later in the day.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)