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London / AFP
European stock markets mostly rose on Wednesday, shrugging off a largely downbeat session in Asia, with sentiment partly lifted by German economic growth data.
Strong foreign trade and buoyant consumption drove Germany’s economy, Europe’s largest, to better-than-expected growth in the second quarter, federal statistics office Destatis said.
Gross domestic product (GDP) grew by 0.4 percent between April and June, adjusted for seasonal, calendar and price effects — twice as fast as analysts surveyed by Factset predicted.
However, the final figure represented a slowdown from the unexpectedly strong 0.7-percent expansion in the first quarter.
News of expanding growth sent Frankfurt stocks climbing 0.4 percent, while Paris won 0.6 percent.
London however drifted 0.2 percent lower, with mining and resources sector weighed down by weak commodity prices — particularly for crude oil — and poor results from Glencore.
Europe’s indices had already rebounded Tuesday after a survey showing that eurozone economic activity edged higher in August with few signs that Brexit-linked dangers are emerging.
“German GDP figures… showed steady growth in the economy,†said economist Ana Thaker at trading firm Phillip
Capital UK.
“This will come as a positive sign following the strong PMI figures of yesterday and growth in the eurozone’s largest economy could permeate through the euro area.â€
London’s top faller was Swiss-based miner Glencore, whose share price tumbled 5.14 percent to 180.05 pence.
Glencore posted a loss of $369 million (327 million euros) for the first half amid collapsing commodity prices. However, that was an improvement on a loss of the $676 million last time around.
Most Asian markets slipped Wednesday as traders trod water ahead of a key speech by Federal Reserve boss Janet Yellen this week, while oil suffered fresh losses on persistent glut worries.
With speculation growing that US interest rates could rise by the end of the year, Yellen’s comments at a global central bankers meeting in Jackson Hole on Friday will be scoured for forward guidance on US central bank policy.
There is a chance borrowing costs could rise as soon as next month, analysts say, but most bets are on a move just before the end of the year, or in February.
ASIAN STOCKS STRUGGLE
In Asia, Tokyo stocks ended 0.6 percent higher with the market led by strong gains among automakers including Toyota and rival Nissan.
Sydney edged up 0.1 percent, helped by a rally in airline Qantas after the firm posted soaring annual net profit — and announced a resumption of dividend payments for the first time in seven years.
But most other Asian markets sank as energy firms were again hit by falling oil prices. Seoul shed 0.3 percent and there were losses also in Wellington, Manila and Jakarta.