European shares flat as recession fears offset earnings boost; PMI data awaited
2022.08.01 10:53
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 29, 2022. REUTERS/Staff
(Reuters) – European shares were subdued on Monday ahead of a slew of manufacturing activity data, as disappointing Chinese economic data fanned worries about a global economic slowdown offsetting a jump in banks after HSBC’s strong results.
The pan-European STOXX 600 was flat at 7:09 GMT, tracking broader markets as China’s official measure of factory activity contracted in July and the Caixin PMI also missed forecasts. [MKTS/GLOB]
Adding to concerns, data showed German retailers ended the first half of 2022 with the sharpest year-on-year sales drop in nearly three decades, as inflation, the Ukraine conflict and the pandemic take their toll.
Investors awaited factory production data from the euro zone at 0800 GMT that could throw light on the pace of economic growth.
London-listed HSBC gained 5.7% as it sought to woo investors with a higher profitability target and bullish dividend outlook. UK’s FTSE 100 climbed 1.1%.
The banking index climbed 1.4%.
Heineken (OTC:HEINY) NV fell 1.6% as the world’s second-largest brewer shelved its margin target for 2023 as costs spiked.
