European stocks mostly lower; UK retailers in focus

European stock markets slipped mainly lower Thursday, with investors digesting more economic data as well as earnings from the retail sector.

At 03:05 ET (08:05 GMT), the DAX index in Germany dropped 0.2%, the CAC 40 in France slipped 0.2%, while the FTSE 100 in the UK traded largely flat.

Trading ranges are likely to be 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.

The European Central Bank is widely expected to cut interest rates further in 2025, and 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.

Eurozone inflation ticked higher to 2.4% in December from 2.2% in November, above the ECB's 2% target, which Villeroy said was largely expected.

"If the pullback in inflation is confirmed in the coming quarters as we expect, common sense would have us heading towards the neutral rate without slowing the pace by summer," Villeroy said.

The ECB estimates the so-called neutral rate is around 2%. Tesco maintains full-year guidance

In corporate news, Tesco (OTC:TSCDY ) stock fell over 3% 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 slumped 7% 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.

BP (NYSE:BP ) has pledged to lift oil production by 44% and gas output by 89% from India's largest field off its west coast, under a decade-long contract, according to block operator Oil and Natural Gas Corp. 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 03:05 ET, the US crude futures (WTI) dropped 0.1% to $73.24 a barrel, while the Brent contract fell 0.1% to $76.09 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