EUROPE MARKETS: Europe Stocks Inch Higher After Pounding Over Economy Fears

By Steve Goldstein, MarketWatch

Europe stocks nudged higher at the start of trade on Thursday, holding ground after the previous day's battering on fears for the global economy in the wake of weak German and Chinese data.

After a 1.68% tumble on Wednesday, the Stoxx Europe 600 added 0.02% to 366.25.

The German DAX added 0.06% to 11499.18 and the French CAC 40 increased 0.08% to 5255.51.

The U.K. FTSE 100 , weighed down by companies trading without the right to the next dividend payment, weakened 0.21% to 7132.87.

What's happening

In the wake of weak German and Chinese economy data, the U.S. yield curve inverted on Wednesday, with the 2-year yield rising above the 10-year yield -- which has happened ahead of the last five recessions.

(https://fred.stlouisfed.org/graph/graph-landing.php?g=oCUz)

On Thursday, the yield curve uninverted -- the 10-year yield was once again higher than the 2-year . Also, the 30-year yield moved back above the key 2% level.

"While the global economy continues to slow and trade tensions weigh on the outlook, we still believe that we are not on the brink of a U.S. or global recession. At the moment, data is generally pointing towards trend growth, with some exceptions such as Germany, which contracted in the second quarter," said Esty Dwek, head of global market strategy at Natixis Investment Managers' Dynamic Solutions unit.

U.S. stock futures rose ahead of data on weekly jobless claims, retail sales and readings of manufacturing sentiment in New York and Philadelphia, after the Dow Jones Industrial Average tumbled 800 points on Wednesday.

In the U.K., retail sales grew a surprisingly strong 3.3% in July compared to a year ago, according to the Office for National Statistics.

Focus stocks

Carlsberg (CARL-A.KO) rallied 5% as the brewer reported largely in-line first-half results, with particularly strong results in Asia. Carlsberg shares have surged 44% this year.

A.P. Moller-Maersk (MAERSK-B.KO) (MAERSK-B.KO) shares rose 2.6% as the shipping group reported a better than forecast second-quarter profit on slight 0.5% revenue growth.

Aegon (AGN.AE) shares tumbled 7% as the Dutch insurer reported a decline in its solvency ratio, which is a measure of its balance-sheet strength.

(END) Dow Jones Newswires

August 15, 2019 05:28 ET (09:28 GMT)

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