News Column

European Stocks Nudge Higher Despite Eurozone Stagnation

August 14, 2014

BRUSSELS (Alliance News) - European stocks inched higher Thursday, withstanding some downbeat figures from the world's three largest economies.

The economic recovery in the eurozone unexpectedly came to a halt in the second quarter, with Germany and Italy shrinking from the prior quarter. GDP was flat in the June quarter, after seeing an increase of 0.2% in the preceding quarter.

US, initial jobless claims rose more than expected to 311,000, up 21,000 from the previous week's revised level of 290,000. Economists expeced jobless claims to edge up to 295,000 from the 289,000 originally reported for the previous week.

Elsewhere, China's latest industrial production and retail sales figures were less robust than the month before.

The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.10%, while the Stoxx Europe 50 index, which includes some major UK companies, is rising 0.17%.

The German DAX added 0.33%, the CAC 40 of France gained 0.25%

In Frankfurt, RWE lost 1.5%. The utility reported unimpressive first-half results, hit by the mild winter that led to low demand for heating, as well as low prices on the electricity markets.

K+S rose 0.66%. The potash maker said first-half loss widened from last year, amid a decline in revenues.

ThyssenKrupp gained 0.7%. The steel maker turned to profit in the third quarter.

TUI climbed 2.1% after underlying profit for the third quarter increased significantly from last year.

In Paris, Kering slipped 1.1%. Goldman Sachs cut Kering to ''Neutral'' from ''Sell.''

Goldman Sachs reduced its rating on LVMH to ''Neutral" from "Buy.'' The stock was down fractionally.

In London, construction firm Carillion picked up 8.3%. The company announced first-half results as well as details about its offer for Balfour Beatty that was rejected by the infrastructure group recently. Balfour Beatty is up over 1%.

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Source: Alliance News

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