European stocks retreated on Thursday as investors praised China’s slowing growth and confused the conciliatory comments from Federal Reserve Chairman Jerome Powell.
According to official data, China’s gross domestic product grew 7.9 percent year-on-year in the second quarter. It was a little lower than expected. Impressions of GDP exceeded expectations on a quarterly basis.
The dollar fell as Powell’s testimony continued in the Senate.
Powell joins the United States Home Financial Services Commission on Wednesday Economy This is the “path” from which the Fed must tighten its simple monetary policy.
The pan-European STOXX 600 fell 0.4% to 458.59 after closing flat on Wednesday with a negative bias. The German DAX fell 0.7%, the French CAC 40 index fell 0.4% and the UK FTSE 100 fell 0.2%.
The pound fell against the dollar after Bank of England Governor Andrew Bailey said he would not make the hasty decision to raise interest rates despite mounting inflationary pressures.
German energy group Siemens Energy plunged nearly 10% after the company predicted it would miss its full-year margin forecast.
Siemens GAMESA Renewable Energy, a Spanish subsidiary, plunged 13.7% after saying it expected a loss in 2021 due to soaring commodity prices.
Medical and security Technology Supplier Draegerwerk AG fell 5.3% after lower interim EBIT in the second quarter from 102 million euros last year to 80 million euros due to lower gross margins and higher operating costs high.
Total Energies SE fell by 1.3%, BP Plc by 2.2% and Royal Dutch Shell by 1.5%. This is because oil increased its losses overnight on the news that oil producers had compromised supply. Oil prices have also been put under pressure by data showing declining demand for gasoline in the United States.
Cybersecurity firm Avast jumped 14.3% after the company confirmed it was in advanced merger negotiations with its US counterpart NortonLifeLock.
Credit data firm Experian rose 5% after raising its forecast for the full year.
Just Eat Takeaway.com fell 3.3%. Online food ordering companies said adjusted EBITDA losses had peaked, mainly caused by fee caps and US and Canadian investment programs.
Economic releases show that UK employment increased in the three months leading up to May and the labor market continues to recover.
According to the National Bureau of Statistics, the employment rate increased by 0.1 point quarterly to 74.8%.
At the same time, the ILO unemployment rate fell by 0.2 percentage point to 4.8%. In the three months to April, the unemployment rate was 4.7%.
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