European Shares Decline As GDP Growth Misses Expectations

European stocks edged lower on Friday after Eurozone GDP data for the first quarter missed expectations.

The euro zone economy grew by 0.1 percent in the first quarter of the year, preliminary figures showed while analysts had forecast a 0.2 percent growth.

Elsewhere, data out of France showed consumer price inflation in the country climbed 5.9 percent year-over-year in April, following a 5.7 percent rise in February.

German unemployment rose more than expected in April, with the number of people out of work increasing by 24,000 in seasonally adjusted terms to 2.567 million.

The pan European STOXX 600 was down 0.3 percent at 7,808 after gaining 0.2 percent on Thursday.

The German DAX dropped half a percent, France’s CAC 40 shed 0.9 percent and the U.K.’s FTSE 100 was down 0.3 percent.

Italian energy group Eni dropped 1.3 percent after sales fell year-over-year.
Electrolux, Europe’s biggest home appliances maker, soared 10 percent after reporting a smaller-than-expected operating loss for the first quarter.

Miners Anglo American, Antofagasta and Glencore fell 1-3 percent, tracking lower copper prices after the first estimate showed the U.S. economy grew at a much slower pace than expected in the first quarter of the year.

Insurer Prudential rallied 2.2 percent after posting a 30 percent jump in new business profit.

Education group Pearson jumped 3.2 percent after reporting better than expected annual earnings.

Lender NatWest Group plunged 5.7 percent amid disappointment over the outlook for the year.

German lender Deutsche Bank edged down slightly after saying it would buy U.K. broker Numis Corp for about 410 million pounds.

Medical and safety technology group Dragerwerk gained 1 percent after delivering strong net sales growth and positive earnings in the first quarter of 2023.

Mercedes-Benz lost nearly 2 percent. After reporting a 12 percent rise in Q1 net profit, the car maker said recent turbulence in the banking sector in the U.S. and Europe would weigh on its outlook.

Chemicals maker Covestro jumped more than 4 percent after announcing it would resume current share buyback program.

Source: Read Full Article