European stock markets made limited gains yesterday after a downbeat session in Asia, with sentiment partly lifted by German economic growth data.
Strong foreign trade and buoyant consumption drove Germany’s economy, Europe’s largest, to better-than-expected growth in the second quarter, federal statistics office Destatis said.
Gross domestic product (GDP) grew by 0.4% between April and June, adjusted for seasonal, calendar and price effects – twice as fast as analysts surveyed by Factset predicted.
However, the final figure represented a slowdown from the unexpectedly strong 0.7% expansion in the first quarter.
The data pushed Frankfurt stocks to a meagre 0.3% gain, while Paris also advanced by the same margin on a slight fall in registered jobless figures in July.
Labour Minister Myriam El Khomri welcomed an indication that the long-term out of work jobless total had dipped for a fifth straight quarter.
London ended lower, losing 0.4% as weak commodity prices hit the mining and resources sector and following poor results from Glencore.
Europe’s indices had rebounded on Tuesday after a survey showing eurozone economic activity edged higher in August with few signs that Brexit-linked dangers are emerging.
“German GDP figures... showed steady growth in the economy,” said economist Ana Thaker at trading firm PhillipCapital UK.
“This will come as a positive sign following the strong PMI figures of Tuesday and growth in the eurozone’s largest economy could permeate through the euro area.”
London’s top faller was Swiss-based miner Glencore, whose share price tumbled 3% to 184.05 pence.
Glencore posted a loss of $369mn (€327mn) for the first half amid collapsing commodity prices. However, that was an improvement on a loss of the $676mn last time around.
On Wall Street, petroleum-linked shares came under pressure ahead of a US oil inventory report with traders awaiting tomorrow’s speech by Federal Reserve Chair Janet Yellen and any sign of an interest rate hike this year.
About 30 minutes into trade, the Dow Jones Industrial Average stood almost unchanged at 18,524.71.
Amid speculation of a rate rise, Yellen’s comments on Saturday at a global central bankers meeting in Jackson Hole will be scoured for forward guidance on US central bank policy.
Most bets are on a move just before the end of the year, or in February.
Glencore share price tumbled 3% to 184.05 pence yesterday after it posted a loss of $369mn (u20ac327mn) for the first half amid collapsing commodity prices.
