European Shares Slip On Weak German Data

Business

European stocks slipped on Friday as German exports data disappointed and caution set in ahead of the release of key U.S. payrolls data due later in the day.

German exports decreased 1.2 percent month-on-month in August, in contrast to the 0.6 percent rise in July, Destatis reported. Economists had forecast a monthly growth of 0.5 percent.

At the same time, imports rebounded 3.5 percent, following a 3.6 percent fall in the previous month. As a result, the trade surplus declined to a seasonally adjusted EUR 13.0 billion from EUR 17.7 billion a month ago.

The pan European Stoxx 600 dropped 0.4 percent to 456.78 after climbing 1.6 percent on Thursday.

The German DAX slipped 0.4 percent, France’s CAC 40 index declined half a percent and the U.K.’s FTSE 100 was marginally lower.

Telecom Italia rose about 1 percent. The Italian telecommunications company and its unit Noovle have signed a partnership with business software maker Oracle to offer cloud services in Italy.

Travel stocks traded mostly higher in London, with British-Airways owner IAG climbing nearly 2 percent after the government announced it will scrap tough COVID-19 quarantine requirements for 47 destinations.

However, TUI Group shares plunged more than 13 percent. The travel company unveiled plans to raise more than 1 billion euros in capital in order to help pay off more than substantial state-backed loans taken during the pandemic.

Harbour Energy surged 6.3 percent after announcing it has priced its senior notes offering of $500 million aggregate principal amount of 5.50 percent senior notes due October 2026.

N Brown Group jumped 4 percent. The online fashion and homeware retailer doubled half year profits during a strong six month period for its strategic brands.

Electronic parts distributor Electrocomponents gained 1 percent after raising its FY guidance.

EssilorLuxottica S.A. shares were down more than 1 percent in Paris after the company launched a recommended mandatory public offer for GrandVision shares.

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