Europe stocks choppy; Bank of England in focus
European stock markets seesawed in morning trade Thursday as global equities trod carefully amid nerves over central bank action.
The pan-European STOXX 600 was up 0.25 percent.
Autos drive forward
New car sales in the European Union rose 10 percent in August, according to data from the European Automobile Manufacturers’ Association.
Volkswagen Group’s European sales were up 6.3 percent in August, Renault grew 14.6 percent, while Fiat also increased sales.
Auto stocks reacted mixed, with Fiat Chrysler and Renault in positive territory, but Daimler was trading lower. Volkswagen was hovering around the flatline.
Morrison shares rise
Retail stocks were also in focus for investors. British supermarket chain Morrison reported a rise in first-half profit and an increase in the interim dividend, sending shares higher.
Next shares were in negative territory after it reported profit before tax down 1.5 percent in the first half of the year.
Shares of H&M were down after it reported a 7 percent rise in August sales, but missed analyst forecasts.
Apple suppliers get boost
Apple’s iPhone 7 goes on general sale on Friday and the company reported initial quantities of its larger-screen iPhone 7 Plus have sold out. The regular iPhone 7 has sold out in the “jet black” color.
The strong demand reported by Apple helped its shares rise on Wednesday, and this spilled over to its European suppliers.
Dialog Semiconductor was trading higher. STMicro and Austria Microsystems reversed earlier gains however.
Central banks in focus
In other business news, troubled Italian bank Monte dei Paschi di Siena (BMPS) has gained a new chief executive but has lost its chairman. Marco Morelli was named CEO on Wednesday but Massimo Toni resigned in a dispute over the bank’s cash call. Shares in the lender were higher.
Elsewhere, markets in Asia opened lower on Thursday, following a mixed finish in the U.S. as oil prices dropped further and uncertainty lingered over key central bank policy meetings next week.
The U.S. Federal Reserve meets on September 20, although the chances of a rate hike remain slim; market expectations for a Fed rate hike next week were 15 percent, according to the CME Group’s FedWatch tool.
U.S. retail sales for August, industrial production, producer prices and business inventories data released on Thursday will be the last major indicators on the U.S. economy ahead of the Fed’s meeting.
The Bank of England is meeting on Thursday but no interest rate changes are expected from the bank. The decision is announced at 12:00 noon London time.
Source: CNBC
