German stocks are falling behind European competitors after weak industrial data

0
88

MarketWatch.com – Top Stories

German stocks got off to a lackluster start on Tuesday, opening in the red and falling behind other major European stock indices after data showed industrial production fell unexpectedly in April.

The pan-European Stoxx 600 SXXP, + 0.29%, rose 0.1% and stayed at record highs, while the FTSE 100 UKX, + 0.26% in London, rose 0.1%. In Paris, the CAC 40 PX1 rose by + 0.28% by 0.1%, while the German blue chip DAX DAX was + 0.16% by 0.1% lower.

German industrial production, which measures total industrial production from manufacturing, the energy industry and the construction industry, fell by 1% in April compared with March, the state’s Federal Statistical Office announced on Tuesday. The numbers fell short of expectations of a 0.4% increase.

Industrial production in Europe’s largest economy fell short of the economists’ forecasts, but rose by 26.4% compared to the previous year. The Bureau of Statistics also revised the same March industry numbers down, from a 2.2% month-over-month increase versus the previously reported 2.5% increase.

Read: German industrial production fell unexpectedly in April

In general, analysts pointed to the unchanged macro picture, with concerns about inflation and the global backdrop to COVID-19 infections – as well as the easing of restrictions in many developed economies – remaining in focus.

“The main investor concerns appear to be short-term inflation risk and whether rising prices are likely to be temporary, with the focus being on this week’s US CPI [consumer-price index] Data for May, ”said Michael Hewson, analyst at CMC Markets.

Hewson noted that the focus of European investors on Thursday was on German industrial data as well as on the June survey by the German economic research institute ZEW on investor expectations.

Mark Haefele, UBS’s chief investment officer, Global Wealth Management Division, said that while the bank remains vigilant for inflation risk, “we believe the environment will remain favorable for equities, with benefits most evident to cyclical parts of the market , including energy and finance. We recently upgraded the highly cyclical Japanese market to the most preferred market in our global strategy. “

Plus: The decision of the ECB is coming. That is what analysts expect.

Shares in European aircraft maker Airbus AIR, + 0.49%, rose nearly 0.5% after the group announced 50 deliveries in May, up 11% from the previous month. Analysts at Swiss bank UBS said it was a “modest take”.

British American Tobacco BATS, + 1.53%, rose nearly 1.5% after the Big Tobacco Group raised its annual forecast for currency-neutral sales growth from a previously targeted 3% to 5% range to over 5% .

Shares in Aviva AV, + 3.58%,
a FTSE 100 component, up 3.5% as Cevian Capital said the group should return £ 5 billion ($ 7.1 billion) to shareholders. The Swedish activist investor announced Tuesday that it had built a nearly 5% stake in the insurance giant.

The price of oil fell slightly, with the benchmark crude oil futures for Brent crude falling around 0.75% to below USD 71 per barrel. The major oil companies listed in Europe fell simultaneously, with BP BP -0.41%,
Royal Dutch Shell RDSA, -1.21%,
Eni ENI, -0.75%,
and total TOT, down -0.78%.

The cryptocurrency asset Bitcoin BTCUSD, -4.51%, fell nearly 4%, from over $ 35,000 on Monday to just above the $ 33,000 mark.

Source Link

Leave a Reply