European Shares Broadly Higher In Cautious Trade

European stocks were broadly higher on Thursday after moderating U.S. inflation eased concerns of earlier-than-expected stimulus tapering by the Federal Reserve.

The pan European Stoxx 600 was marginally higher at 474.69 after eight consecutive days of record gains. The German DAX and France’s CAC 40 index rose 0.2 percent each, while the U.K.’s FTSE 100 was down about 0.1 percent.

Dutch insurer Aegon NV advanced 6.7 percent after reporting better than expected results for the second quarter.

Zurich Insurance Group AG rallied 3.6 percent. The Swiss insurer’s Group first-half business operating profit jumped 60 percent to beat expectations.

SGL Carbon dropped 1 percent despite the German carbon and graphite product manufacturing company delivering strong first-half results.

Travel agency firm TUI AG gained 1.3 percent after it returned to cash flow for the first time since the coronavirus pandemic.

Internal combustion engine manufacturer DEUTZ soared 4.2 percent after confirming its 2021 guidance.

Chemicals and consumer goods company Henkel lost 2.2 percent after it voiced concern about rising prices and over-stretched supply chain.

Delivery Hero tumbled 4.2 percent. The online food ordering company raised its gross merchandise value outlook for the full year after delivering strong performance in the second quarter.

Cineworld Group rallied 4.4 percent in London. The company said it was considering a plan to list its shares on Wall Street or partially float its movie chain Regal.

Stock Spirits Group shares soared 44 percent as the alcohol company agreed on a £767mln takeover offer by CVC Advisers.

In economic releases, Eurozone industrial production declined at a slower pace in June, data published by Eurostat showed.

Industrial output was down 0.3 percent month-on-month, slower than the 1.1 percent decrease seen in May. This was the second consecutive fall. Economists had forecast a monthly drop of 0.2 percent.

On a yearly basis, industrial production growth eased to 9.7 percent in June from 20.6 percent in May.

The U.K. economy recovered strongly in the second quarter, following the easing of coronavirus restrictions, the first quarterly estimates from the Office for National Statistics revealed.

Gross domestic product grew 4.8 percent sequentially in the second quarter, reversing a 1.6 percent fall in the first quarter.

The rate matched economists’ expectations. Nonetheless, the level of GDP was 4.4 percent below its pre-pandemic level.

Another report from the ONS showed that the visible trade gap widened to GBP 11.98 billion in June from GBP 9.6 billion in May.

Source: Read Full Article