Europe stock markets mixed after China GDP; Travis Perkins slips 6%

European stock markets were mixed in morning trade on Wednesday, following a raft of data out of China which showed government spending had helped the world’s second-largest economy to stabilise.

The pan-European Euro Stoxx 600 Index was flat with major bourses pointing in directions. The main focus Wednesday was China’s gross domestic product which grew 6.7 percent in the year to September, precisely in line with forecasts.

Tepid private investment was compensated for by robust government spending and a heated property market. Industrial output was the key disappointment and concerns persist that unsustainable credit growth was a key support factor in the numbers.

“Whilst today’s official Chinese economic data rightly occupy a prominent spot in our headlines, we are always mindful of the criticism that often comes their way. After all, that China has been reproached in the past for ‘smoothing’ data will hardly be a revelation to readers,” Neil Mellor, senior currency strategist at BNY Mellon, said in a morning note.

Travis Perkins down 6%

Meanwhile on the earnings front, there was mixed news out overnight from Anglo-Australian miner BHP Billiton which reported a slide in quarterly iron ore production but said it sees the early signs of a commodity recovery. London-listed shares were down 0.5 percent in early deals.

French retailer Carrefour reported an acceleration in sales growth and saw its shares rise 3 percent.

Shares of building supplier Travis Perkins fell 5.5 percent after it announced branch closures and warned on its 2016 profit.

Credit management services company Intrum Justitia rose 6.6 percent in early deals after a string set of third-quarter results.

Source: CNBC

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