European stocks receded Thursday as investors praised China’s slowdown in growth and confused dovish comments from Federal Reserve Chairman Jerome Powell.
According to official data, China’s gross domestic product increased 7.9% year-on-year in the second quarter. It was slightly lower than expected. GDP prints exceeded expectations on a quarterly basis.
The dollar fell as Powell’s testimony continued in front of the Senate.
Powell joins US Home Financial Services Commission on Wednesday Economy Is the “way” from where the Fed needs to tighten simple monetary policy.
The Pan-European STOXX 600 fell 0.4% to 458.59 after ending flat on Wednesday with a negative bias. Germany’s DAX fell 0.7%, France’s CAC 40 index gave up 0.4%, and the UK’s FTSE 100 fell 0.2%.
The pound sterling fell against the dollar after Bank of England governor Andrew Bailey said he would not make a hasty decision to raise interest rates despite rising inflationary pressures.
German energy group Siemens Energy plunged almost 10% after the company predicted it would miss full-year margin guidance.
Siemens GAMESA Renewable Energy, a Spanish subsidiary, plunged 13.7% after saying it expected a loss in 2021 due to soaring raw material prices.
Medical and safety Technology Provider Draegerwerk AG fell 5.3% after a decline in interim EBIT in the second quarter from € 102 million last year to € 80 million due to lower gross margins and higher functional costs.
Total Energies SE fell 1.3%, BP Plc fell 2.2% and Royal Dutch Shell gave up 1.5%. This is because oil expanded its losses overnight in the news that oil producers had compromised on supply. Oil prices were also pressured by data showing a decline in US gasoline demand.
Cybersecurity firm Avast surged 14.3 percent after the company confirmed that it was in advanced merger negotiations with its US peer NortonLifeLock.
Credit data firm Experian rose 5% after raising guidance for the whole year.
Just Eat Takeaway.com fell 3.3%. Online food ordering firms said adjusted EBITDA losses peaked, primarily caused by US and Canadian fee caps and investment programs.
Economic releases show that UK employment increased in the three months to May and the labor market continues to recover.
According to the National Bureau of Statistics, the employment rate rose 0.1 points quarterly to 74.8%.
At the same time, the ILO’s unemployment rate fell 0.2 points to 4.8%. In the three months leading up to April, the unemployment rate was 4.7%.
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