EUROPE MARKETS: European Stocks Advance As Miners Shine, But Head For Monthly Loss
European stocks moved higher Thursday, as basic resources shares rose following better-than-expected manufacturing data from China, but retail shares struggled after a warning from French supermarket chain Carrefour SA.
The Stoxx Europe 600 index picked up 0.5% to 372.89, led by the basic materials and industrials groups, but the consumer services sector fell.
The moves came ahead of the first reading of August inflation for the eurozone, due at 10 a.m. London time or 5 a.m. Eastern Time.
The regional benchmark, however, was on track for a fall of 1.3% for August. Stocks have been hurt by strength in the euro , which recently hit a more than two-year high against the U.S. dollar and a roughly eight-year high against the pound .
Miners lead: Gains overall on Thursday were led by a jump in shares of metals producers, which pushed the Stoxx Europe 600 Basic Resources Index up by 1.8%. Miners climbed after an official gauge of China’s factory activity rose in August (http://www.marketwatch.com/story/chinas-official-manufacturing-pmi-beats-forecasts-2017-08-30). China is a key buyer of industrial and precious metals, making mining companies sensitive to developments in the world’s second-largest economy.
Among top movers in the group, copper producer Antofagasta PLC (ANTO.LN) tacked on 4.2%, and Anglo American PLC (AAL.LN) bulked up 2.9%. Steel producer ArcelorMittal (MT) added 1.6%.
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Stock movers: But food and drug retailers were under pressure as Carrefour (CA.FR) tumbled 14%. The supermarket chain cut its sales guidance for the year (http://www.marketwatch.com/story/carrefour-lowers-sales-out-look-after-profit-dips-2017-08-30) and flagged difficult trading conditions in some of its international markets. Carrefour also said the market was difficult in France because of strong competition.
Shares of Carrefour’s French rival Casino Guichard-Perrachon S.A. (CO.FR) fell 5.8%.
Indexes: Germany’s DAX 30 index rose 0.6% to 12,071.02, and France’s CAC 40 index added 0.5% to reach 5,080.54. In London, the FTSE 100 tacked on 0.5% to 7,404.22.
(END) Dow Jones Newswires
August 31, 2017 04:59 ET (08:59 GMT)