European shares trades in negative territory, shrugging off China’s growth data
European shares traded in negative territory on Thursday, failing to get a boost from Chinese growth data showing a rebound in the economy.
The pan-European Stoxx 600 slid 1 percent by mid-morning, with food and beverages shedding 1.8 percent to lead losses as all sectors and major bourses slid into the red.
International investors will be digesting the latest growth data from China Thursday for further clues on how the world’s second-largest economy is recovering from the coronavirus pandemic.
China reported that the country’s GDP grew by 3.2 percent in the second quarter of this year, compared to a year ago, beating analysts’ expectations of 2.5 percent growth and rebounding from the first quarter’s contraction.
Stocks in Asia Pacific were lower in Thursday afternoon trade following the data, nonetheless.
Meanwhile, the coronavirus pandemic continues to weigh on sentiment as the U.S. reports rising numbers of new coronavirus cases. White House health advisor Dr. Anthony Fauci is pushing back against Trump administration efforts to discredit him, calling the campaign “bizarre” and saying he will not step down.
Fauci on Wednesday predicted on Wednesday that the U.S. will meet its goal of a coronavirus vaccine by the end of the year, telling Reuters in an interview that he feels “good about the projected timetable.”
In Europe, investors are awaiting the latest monetary policy decision from the European Central Bank, although the bank is not expected to announce any policy changes Thursday.
In terms of individual share price action, Swedish Orphan Biovitrum fell 7.5 percent in early trade to the bottom of the European blue-chip index, while German pharmaceutical firm Sartorius rallied 7.4 percent after raising its full-year profit guidance.