Sboll is Your Go-to Source for the Latest Finance News, Covering Markets, Banking, Investments, Economy and Stocks.
⎯ 《 Sboll • Com 》

European stocks steady as gains in oil shares offset China jitters

2023-07-10 17:49
By Matteo Allievi (Reuters) -European shares recovered from early losses on Monday, as gains in oil and insurance stocks offset
European stocks steady as gains in oil shares offset China jitters

By Matteo Allievi

(Reuters) -European shares recovered from early losses on Monday, as gains in oil and insurance stocks offset the impact of weak inflation data out of China that highlighted sluggish demand in the world's second largest economy.

The pan-European STOXX 600 index inched up 0.1% at 0912 GMT, recovering from a weak opening.

Oil and gas stocks climbed 0.7% even as crude prices remained under pressure ahead of key U.S. economic data this week. [O/R]

Insurers and banks also rose about half a percent each, though miners slid 1.0% as metal prices dipped. [MET/L]

Data on Monday showed China's producer prices fell at their fastest pace in over seven years in June, while consumer prices teetered on the edge of deflation, adding to the case for more stimulus to revive sluggish demand.

"While inflation shows signs of stubbornness in other economies, disinflationary forces are at work in China," said Susannah Streeter, head of money and markets, Hargreaves Lansdown. "The initial pentup demand after the pandemic restrictions were lifted is fizzling out."

The benchmark STOXX 600 recorded its worst weekly performance in almost four months on Friday as hawkish messages from central bank policymakers and resilient U.S. economic data fuelled concerns that interest rates will remain elevated for a longer period.

U.S. consumer prices data scheduled for Wednesday is expected to show a slowdown in June inflation.

Traders will also monitor the kickoff of the U.S. earnings season later this week. The reports from big banks such as JPMorgan, Wells Fargo and Citigroup will provide a snapshot of the health of the economy.

Among single stocks, Bayer rose 2.3% following a report that the German drugs-to-pesticides giant could spin off and list its CropScience unit.

Wihlborgs Fastigheter fell 5.5% after the Swedish real estate firm reported its first-half results and noted an uncertain outlook for Sweden's economy.

Scout24 dropped 5.9% after UBS downgraded the online property platform to "sell", citing pressure on the German housing market.

(Reporting by Matteo Allievi in Gdansk and Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips and Shinjini Ganguli)