Europe midday: Stocks stay in the red as China slowdown worries hits sentiment
European shares trimmed early losses slightly at midday, but were still lower after very weak retail sales figures from China spooked investors worried about a global economic slowdown.
The pan-European Stoxx 600 was down 0.24%, with the UK's FTSE 100 bucking the trend to hover just above the flatline, 0.3% higher.
China's April retail sales plunged 11.1%, almost twice the fall forecast, and the biggest drop since March 2020 as the Covid pandemic took hold, while industrial output dropped 2.9% against expectations of a small rise.
Industrial production also fell for the first time in over two years, down 2.9% against expectations of 0.4% growth and down from a 5% rise in March.
“European markets have opened in the red with travel & leisure and chemicals underperforming while telcos have emerged on top thanks to a near 10% stake purchase of Vodafone by a UAE rival," said Interactive Investor head of investment Victoria Scholar.
In equity news, Ryanair shares fell as the low-cost carrier said ticket fare levels were lower than the company had anticipated earlier in the year.
Digital advertising group S4 Capital plunged almost 10% after a Sunday Times report described the company's recent woes over delays to its accounts, quoting current and former employees of Martin Sorrel's firm.
Vodafone shares gained after Emirates Telecommunications Group bought a 9.8% stake in the company.
Valneva slumped after warning that the French vaccine maker might have to reassess its financial guidance after the European Commission informed that it plans to terminate an advance purchase agreement for its Covid-19 vaccine candidate.
Shares in French retailer Casino rose as the company started the process to sell its renewable energy unit GreenYellow.
Diploma shares fell as the company said margins would be at the top end of guidance, but first-half revenue missed estimates.