European stocks close mixed; retailers slump after updates

European stock markets closed in a mixed fashion Thursday, with investors digesting more economic data as well as earnings from the retail sector.

At 11:45 ET (16:45 GMT), the DAX index in Germany dropped 0.1%, while the CAC 40 in France climbed 0.5% and the FTSE 100 in the UK traded 0.8% higher.

Trading ranges were limited in Europe Thursday, with the US closed in honor of former President Jimmy Carter, ahead of a state funeral later in the session. German industrial production impresses 

German industrial production rose in November by 1.5% compared to the previous month, much higher than 0.5% rise expected.

This was a welcome piece of good news, but follows German industrial orders falling 5.4% in November and the country’s retail sales dropping 0.6% in the same month.

Additionally, eurozone retail sales grew less than expected in November, rising 0.1% in November compared to the previous month, falling short of expectations for 0.4%.

Compared to the same month a year ago, retail sales grew by 1.2%, with the rate staying on a downward trajectory for the second month in a row.

The eurozone economy has been skirting recession for the past year, and the European Central Bank is widely expected to cut interest rates further in 2025.

Interest rates should reach the point where they are no longer a drag on growth by this summer if inflation is tamed by then, ECB policymaker Francois Villeroy said in a speech on Wednesday. The ECB estimates the so-called neutral rate is around 2%.

Eurozone inflation ticked higher to 2.4% in December from 2.2% in November, above the ECB's 2% target. Retailers in focus

In corporate news, Tesco (OTC:TSCDY ) stock fell 0.7% despite the UK retailer posting strong results over the festive period, as UK like-for-like sales growth accelerated to 4.1% in the six weeks to Jan. 4.

However, the grocer maintained its operating profit guidance for the 2024/25 year, disappointing investors who had hoped for a further boost after the upgraded guidance at half-year results.

Additionally, Marks & Spencer (OTC:MAKSY ) stock was down 1.8% after the UK retailer commented on economic headwinds, despite reporting “another good Christmas”, with like-for-like sales rising 6.4% in the 13 weeks to Dec. 28.

Greggs (LON:GRG ) stock fell 15.8% after the low-cost food retailer's trading update reported slowing growth in like-for-like sales and cautious forward guidance. 

B&M European (LON:BMEB ) stock dropped 8.5% after the retailer lowered the top end of its annual profit forecast as UK sales dropped in the company’s third fiscal quarter. Crude stable after US inventories build

Oil prices steadied Thursday after the prior session’s losses, in the wake of the release of large builds in fuel inventories in the US, the world's biggest oil user.

By 11:45 ET, the US crude futures (WTI) climbed 1.1% to $74.15 a barrel, while the Brent contract rose 1.2% to $77.07 a barrel.

Both contracts fell more than 1% on Wednesday, dropping back from levels near the highest since mid-October as a stronger dollar and the bigger-than-expected rise in US fuel stockpiles weighed.

Gasoline stocks rose by 6.3 million barrels last week to 237.7 million barrels, the US Energy Information Administration said on Wednesday, ahead of the expected 1.5 million-barrel build. 

 

 

Source: Investing.com