By Pranav Kashyap
(Reuters) -European shares rose on Thursday as investors sifted through a wave of economic data from major European economies, while anticipating the start of the Federal Reserve’s Jackson Hole conference later in the day.
The pan-European STOXX 600 index rose 0.5% at 516.29 points.
SEA OF PMI DATA
Flash purchasing managers’ index (PMI) for the euro zone showed surprising strength in business activity in August, bouncing to 51.2, despite firms raising prices.
France’s PMI surged to a 27-month high of 55.0 in August, driven by a boost from the Olympics, and exceeding forecasts. This pushed the French benchmark CAC 40 up by 0.3%.
Conversely, Germany’s business activity contracted for the second consecutive month, and by more than expected, PMI data showed. The German benchmark DAX was unchanged, trading at 0.2%
Britain’s PMI was at 53.4, showing that business activity accelerated this month. The benchmark FTSE was up by 0.3%.
Consumer confidence data for the Eurozone, the U.S. PMI and initial jobless claims figures – all due later in the day – will also be closely watched.
Overnight, the Nasdaq rose nearly 0.6%, buoyed by the Fed’s July meeting minutes that hinted at a potential rate cut in September. [.N]
Markets now await more details on the cut’s size at the Jackson Hole conference, commencing later in the day. Chair Jerome Powell will deliver the keynote speech on Friday.
“Don’t expect any surprises from Jackson Hole. There’s already been enough communication leading up to it. The last thing they want to do is shock the market,” said Daniel Morris, chief market strategist at BNP Paribas Asset Management.
In terms of European equities, “It’s still a slightly disappointing recovery,” Morris added.
“Are Europe stocks going to do better than U.S. equities or, the rest of the world? It’s harder to come up with a scenario where you see this happening”.
The retail sector rose to the top, boosted by a 4.8% gain in JD Sports after the British sportswear retailer reported an improvement in second-quarter underlying sales growth.
Energy stocks weighed the most, dropping 0.3% as oil prices fell for a fifth session as investors worried about its global demand outlook. [O/R]
Among individual stocks, Aegon lost 4.7% after the Dutch insurer said its key capital generation metric fell in the first half of the year.
CTS Eventim surged 7.8% after the German ticketing group raised its full-year earnings forecast.
(Reporting by Pranav Kashyap in Bengaluru; Editing by Savio D’Souza and Janane Venkatraman)
