Europe midday: Stocks lose steam ahead of US retail sales data

European stocks had lost steam by midday on Thursday, trading flat to lower as investors eyed the release of US retail sales figures.

The benchmark Stoxx 600 index was steady, Germany’s DAX was 0.1% lower, and France’s CAC 40 was down 0.4%.

Stocks had kicked the day off higher, having fallen in the previous two sessions after a hotter-than-expected US inflation print for August fuelled expectations of another big rate hike from the US Federal Reserve.

On the macro front, all eyes were on US retail sales figures for August, due at 1330 BST.

Richard Hunter, head of markets at Interactive Investor, said: "Markets will turn to the release of retail sales later and how consumers are faring in light of the current economic pressures.

"The consumer is core to economic growth in the US, and the optimistic hope is that a reduction in gasoline prices may have encouraged spending in other areas of the economy. The release should also add further colour to the underlying demand situation, and whether the interest rate hikes already implemented have cooled propensity to spend."

In equity news, Swedish retailer H&M fell after it reported lower-than-expected third-quarter sales.

Victoria Scholar, head of investment at Interactive Investor, said: "H&M reported third quarter net sales up 3% to 57.5 billion crowns, however this was below analysts’ expectations for a 5% increase.

"Unlike its rival Inditex, which owns Zara, H&M has been struggling to navigate the macroeconomic challenges of rising cost inflation, supply problems and squeezed household budgets. The extent to which these headwinds are weighing on the business will become clear in its full-year earnings on 29th September.

"Shares in H&M have slumped more than 35% this year alone and longer-term, investors have had a tough time with the stock which has shed almost 50% over the past five years."

Elsewhere, German energy company Uniper rallied as it announced it is in talks over increasing the German government’s stake from 30% to 50%.

Oil and gas giant Shell ticked lower after it said that company veteran Wael Sawan will succeed chief executive Ben van Beurden as he steps down from the role at the end of 2022 following a 39-year career with the group. It was reported earlier this month that van Beurden would be leaving.