Europe stocks choppy after weak German data

European stocks were slightly higher in morning trade on Wednesday as investors digested weaker U.S. data which lowered the chances of the U.S. Federal Reserve hiking interest rates later this month.

The pan-European STOXX 600 was up around 0.14 percent with a lack of conviction setting into markets. Major sectors were pointing in different directions.

On the data front, German industrial output for July fell 1.5 percent month-on-month, according to data from the Economy Ministry, its steepest monthly drop since August 2014.

In stocks news, U.S. seed producer Monsanto shareholders have increased the pressure on Bayer to raise its already sweetened takeover offer but some of the German firm’s own investors have warned the current offer is already too high, the Financial Times reported. Bayer shares were flat.

Volkswagen shares were trading higher after the Wall Street Journal reported the German carmaker was in advanced talks with China Anhui Jianghuai Automobile to produce electric vehicles in the country.

US data falls

Meanwhile, European investors were digesting the latest data out of the U.S. which, along with disappointing nonfarm payroll data last Friday, could appear to quash any chance of a rate hike when the Federal Open Market Committee (FOMC) meets later in September.

Data showed the U.S. Institute for Supply Management (ISM) non-manufacturing Purchasing Managers’ Index (PMI) index fell to 51.4 last month from 55.5 in July. While a level above 50 still indicates expansion, it was the lowest reading since February 2010.

Sports Direct down 5%

On other stocks news, Sports Direct, the British retailer which has come under pressure for its working practices, unveiled a strategic plan on Wednesday to be enacted over the next two to four years. Shares in the firm were down over 9 percent.

Airline stocks Lufthansa, Air France-KLM and Easyjet were deep in negative territory after Deutsche Bank cut its outlook for the stocks.

And shares of Worldpay were near the bottom of the STOXX 600 after two of the payment processor’s largest shareholders – Advent International Corp. and Bain Capital – sold 350 million shares in the company.

Source: CNBC