European stocks steady as gains in oil shares offset China jitters (updated)

Scout24 SE

10/07/2023 10:36

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        * 
      Markets recover from early losses 
    

        * 
      Oil stocks jump despite weaker crude
    

        * 
      Bayer up on CropScience spin-off speculation 
    

  
 (Updated at 0912 GMT)
    By Matteo Allievi
       July 10 (Reuters) - European shares recovered from early
losses on Monday, as gains in oil and insurance stocks offset
the impact of weak inflation data out of China that highlighted
sluggish demand in the world's second largest economy.
    The pan-European STOXX 600 index  .STOXX  inched up 0.1% at
0912 GMT, recovering from a weak opening. 
    Oil and gas  .SXEP  stocks climbed 0.7% even as crude prices
remained under pressure ahead of key U.S. economic data this
week.  O/R 
    Insurers  .SXIP  and banks  .SX7P  also rose about half a
percent each, though miners  .SXPP  slid 1.0% as metal prices
dipped.  MET/L  
    Data on Monday showed China's producer prices fell at their
fastest pace in over seven years in June, while consumer prices
teetered on the edge of deflation, adding to the case for more
stimulus to revive sluggish demand.
    "While inflation shows signs of stubbornness in other
economies, disinflationary forces are at work in China," said
Susannah Streeter, head of money and markets, Hargreaves
Lansdown. "The initial pentup demand after the pandemic
restrictions were lifted is fizzling out."
    The benchmark STOXX 600 recorded its worst weekly
performance in almost four months on Friday as hawkish messages
from central bank policymakers and resilient U.S. economic data
fuelled concerns that interest rates will remain elevated for a
longer period.
    U.S. consumer prices data scheduled for Wednesday is
expected to show a slowdown in June inflation.
    Traders will also monitor the kickoff of the U.S. earnings
season later this week. The reports from big banks such as
JPMorgan, Wells Fargo and Citigroup will provide a snapshot of
the health of the economy.      
    Among single stocks, Bayer  BAYGn.DE  rose 2.3% following a
report that the German drugs-to-pesticides giant could spin off
and list its CropScience unit.
    Wihlborgs Fastigheter  WIHL.ST  fell 5.5% after the Swedish
real estate firm reported its first-half results and noted an
uncertain outlook for Sweden's economy.
    Scout24  G24n.DE  dropped 5.9% after UBS downgraded the
online property platform to "sell", citing pressure on the
German housing market. 

 (Reporting by Matteo Allievi in Gdansk and Sruthi Shankar in
Bengaluru; Editing by Sherry Jacob-Phillips and Shinjini
Ganguli)
 ((Matteo.allievi@thomsonreuters.com;))