Newscasts - Europe Today: European shares waver in lead-up to crucial US data

Swiss Life Holding AG

03/09/2024 11:00

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Source: 'Reuters - Business videos'

Description: Europe stocks struggled for direction on Tuesday as investors
remained cautious ahead of a raft of economic data in the run-up to the
all-important U.S. jobs report on Friday, while German stocks hit all-time
highs.
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Video Transcript:

More highs for the DAX but stocks are hesitant ahead of US data. Welcome to
Europe Today. I'm David Pollard. European stocks were struggling for direction
today as investors remain cautious ahead of a slew of US data. But German
stocks hit all-time highs before surrendering gains as they built on hopes for
an ECB rate cut this month. Among today's movers, Rolls-Royce recovering from
Monday 6.5% slide after Cathay Pacific inspected its entire Airbus A350 fleet,
that after the inflight failure of an engine part. The stock was up more than
4%, with Airbus also gaining. Swiss Life were trading at multi-year highs
after the insurer and asset manager reported half-year fee results above
expectations. And Deutsche Bank are higher after Barclays upgraded the lender
to overweight on the potential for capital distribution plans. For the second
day in a row, there's upbeat news on the UK economy. Consumer spending
increased modestly in August, fueled by summer spending on food and drink,
according to two reports. Barclays says consumer spending on its credit and
debit cards rose by 1% year-on-year, after two months of decline. The BRC also
said spending in shops increased by 1%, the strongest uptick since March. On
Monday, August PMI data pointed to the best month in more than two years for
British factories. In corporate news, British regulators have given a green
light to BBVA to take indirect control of TSB, the British unit of Spain's
Sabadell. This is BBVA moves closer to completing its EUR12 billion bid for
its peer. BBVA has already received clearance from countries including the US
and France, but still needs approval from the ECB and Spanish regulators.
Sweden's Volvo says it's to launch a long-range variant of its FH electric
truck capable of covering up to 600 kilometers on a single charge. It says the
new model will use an electronic axle technology to combine motor, gearbox and
axle into one unit to increase battery capacity. Weak Chinese data is
dampening oil market sentiment. Rent was down around $0.90 a barrel though
WTI, which did not settle on a holiday Monday in the US was showing smaller
losses. Data showed Chinese PMI's hitting a six-month low while export orders
slipped in July for the first time in eight months. For the moment, demand
worries are outweighing concerns around supplies out of Libya. Finally, as
hopes rise for an ECB rate cut, a raft of data in the US may determine how far
the Fed will cut this month. First up is the US ISM manufacturing survey
today. Economists predict an improvement, but with factory output remaining in
contraction. On Friday, focus turns to the all-important August US payrolls
report. That is Europe Today