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Singapore - European stocks retreated as investors assessed Chinese data for indications of the health of the global economy, while awaiting updates from the European Central Bank (ECB) and Federal Reserve.
The Stoxx Europe 600 Index fell 0.4% to 341.26 at 09:24. Equities posted their biggest advance in almost a month yesterday, with miners and banks leading a broad-based rally on optimism monetary policy will remain supportive of growth.
While China’s industrial output unexpectedly slowed in September, gross domestic product rose 6.7% in the third quarter, all but ensuring the government’s full-year target will be met.
As a primary driver of the global economy, Chinese data has returned to the spotlight as the Fed prepares to raise interest rates and the ECB struggles to boost growth in the eurozone.
The Fed releases its Beige Book survey of regional conditions in the US after the close of European trading today. Investors are also awaiting tomorrow’s ECB meeting for updates on its stimulus policy. Most economists in a Bloomberg survey predict it will prolong the bond-buying program at its December meeting.
Among stocks moving on corporate news today:
Reckitt Benckiser declined 2.7% after the maker of Durex condoms and Nurofen painkillers reported disappointing third-quarter sales. Travis Perkins slipped 5.1% after forecasting full-year adjusted earnings slightly below consensus estimates. ASML advanced 3.9% after Europe’s largest semiconductor-equipment maker forecast fourth-quarter profitability above analysts’ estimates.
Carrefour rose 1.6% after France’s biggest retailer reported third-quarter revenue that beat forecasts on stronger-than-expected growth in its home country.
Svenska Handelsbanken advanced 1.1% after the Stockholm-based bank posted a higher-than-estimated 21% jump in third-quarter profit as record low interest rates boosted lending income and it booked a gain from the sale of a stake in Industrivaerden.
Zalando added 2.7% after the German online apparel retailer raised its 2016 profit forecast after it turned an unexpected profit. Rentokil Initial added 1.8% after saying revenue rose in the third quarter and reiterating its full-year guidance.
Accor advanced 3.2% after Europe’s largest hotel operator posted an increase third-quarter sales, even as it lowered its full-year profit target.
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