Left Menu
Development News Edition

European shares ease from eight-month high as miners weigh

European shares ease from eight-month high as miners weigh
European shares eased from eight-month highs on Wednesday, weighed down by healthcare and mining stocks while investors looked past better-than-expected first-quarter economic growth in China. The pan-European STOXX 600 index was down 0.2 percent by 0930 GMT after five straight days of gains. All country indexes were flat to higher except London FTSE 100 .

China's economy unexpectedly steadied in the first quarter, defying expectations for a further slowdown, as industrial production jumped sharply and consumer demand showed signs of improvement. Analysts said it was too early to call a sustainable turnaround there, and further policy support would be needed to maintain momentum.

"The reaction in equity markets was muted after the data release, probably because much of the positivity has already been priced in," said Hussein Sayed, chief market strategist at FXTM. The positive China data spurred demand for auto stocks , the most among European sectors, as concerns over global growth eased. The data also pushed Germany's 10-year government bond yield to a four-week high.

Banks rallied 0.6 percent and drove a 0.3 percent gain in Italy's bank-heavy. However, losses in basic resources and healthcare stocks outweighed.

BHP Group PLC fell 3 percent, bringing down London's FTSE and the STOXX 600 as the world's biggest miner cut its forecast for iron ore output, a day after rival Rio Tinto slashed its output guidance. The healthcare sector also dropped 1.3 percent as Novartis fell after Jefferies reduced price target on its shares.

Danone slipped 1 percent after the French food group's first-quarter sales slowed on weaker demand for infant formula products in China and a consumer boycott in Morocco. Its peer Nestle SA dropped about a percent ahead of its quarterly report on Thursday.

Bunzl was the worst performer on the pan-European index, down nearly 9 percent after the business supplies distributor said first-quarter growth slowed as the grocery and retail business in its biggest market - North America - remained sluggish. Also capping losses was the tech sector, helped by a climb in chip stocks and Mobile telecom equipment maker Ericsson .

ASML Holding rose more than 2 percent after the semiconductor equipment maker reported better-than-expected first quarter earnings and repeated it expects growth to accelerate through the year. European chip stocks - AMS, STMicro, Siltronic, Infineon Technologies - were up between 1.5 percent and 5 percent as U.S. peer Qualcomm Inc surged on Tuesday on an iPhone modem chips deal with Apple Inc.

Ericsson ticked about 3 percent higher after beating first-quarter result forecasts and raising full-year outlook for the global networks market. Commerzbank shares rose 3 percent after a media report that Dutch bank ING added its name to a list of merger suitors. That followed approaches by Deutsche Bank and Italy's UniCredit (Reporting by Medha Singh and Susan Mathew in Bengaluru; editing by John Stonestreet and Angus MacSwan)

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

Download The Devdiscourse News App for Latest News.



Future of Food: Technology fostering the road to global food security

Technological innovation can help address most of the pressing issues facing the world today including food security by enhancing productivity, improving financial services, managing resources, addressing environmental concerns, etc....

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Now it’s a war, Uganda deploys army to combat locust swarms

Its for the first time after 1986, the locust swarms have attacked Uganda twice in a season. With the increasing number of countries of Africa under attack by locust swarms, the problem seems to have taken a regional paradigm. Its very diff...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...


Latest News

Rugby-Woodward hails Jones for ignoring 'noise' over England selections

England head coach Eddie Jones deserves praise for sticking to his guns with his team selections after Sundays dominant 24-12 victory over Ireland in the Six Nations, former coach Clive Woodward has said. Joness selections had been come in ...

Ex-Odisha MLA arrest: Kin demand CBI probe into 2016 double murder case

The family members of Anup Sai, a former BJD leader expelled from the party, have demanded a CBI probe into the 2016 double murder case in connection with which, the former Odisha MLA has been arrested by the Chhattisgarh police.A police te...

Whizdom Club Launches Whiz Cafe to Inspire Collaboration

The latest addition to the citys foodscape, Whiz Cafe offers not only a menu featuring delectable savouries and sweets crafted to inspire creativity but also an ambience and design that are all set to facilitate collaboration New Delhi, De...

China allows non-residents of Wuhan to leave virus centre

Beijing, Feb 24 AFP Non-residents of Wuhan may leave the quarantined city at the epicentre of Chinas virus epidemic if they show no symptoms and have never had contact with patients, authorities said Monday.Wuhan, a city of 11 million, has ...

Give Feedback