Europe open: Shares flat as investors fret over tapering, Covid surge

European shares crept into positive territory at the opening on Friday with investors still fretting over winding down of global monetary stimulus and a rising number of Covid cases.

The pan-European STOXX 600 was flat after Thursday’s 1.5% slump driven by signals from the US Federal Reserve that it could start tapering asset purchases later this year.

Germany’s DAX slipped 0.12% as data showed producer prices jumped more than expected last month.

The UK’s FTSE 100 was up 0.24 despite an unexpected fall in July retail sales as people spent less on groceries and more on going out and as the boost from the Euros faded, according to figures released by the Office for National Statistics.

In equity news, UK food and clothing retailer Marks & Spencer surged to the top of the Stoxx with a 9% rise after lifting annual profits guidance on the back of a surge in summer sales.

Supermarket Morrisons jumped 4.5% after agreeing a takeover offer worth £7bn.