Europe close: Stocks little changed after US retail sales, consumer confidence reports
European stocks were little changed as reports showed an increase in US retail sales and consumer confidence, adding to speculation on an interest rate hike.
US retail sales rose 0.6% in August, as expected by analysts, following a 0.3% increase a month earlier.
The University of Michigan’s consumer confidence index climbed to 84.6 from 82.5, ahead of forecasts for a reading of 83.3.
“The rise in consumer confidence in September adds to the evidence from August's upbeat retail sales report that third quarter consumption growth will come in stronger than we initially expected,” Capital Economics said. “It looks like the economic recovery has a good deal of momentum.”
The data comes ahead of the Federal Reserve’s policy meeting next week when the central bank will consider whether the economy has picked up enough to sustain an interest rate rise.
In the Eurozone, European Central Bank President Mario Draghi said the euro-area would return to pre-crisis levels if governments achieve reforms to boost growth. Draghi met with finance ministers in the bloc in Milan on Friday to discuss the economic situation.
Elsewhere in the euro-area, a report showed employment rose by 0.4% year-on-year in the second quarter after a 0.2% increase in the previous three months.
European industrial production gained 1% month-on-month in July after a 0.3% dip, beating forecasts for a 0.7% rise.
Meanwhile, the European Union’s fresh sanctions against Russia for its insurgence in Ukraine came into effect on Friday. Russia may reportedly respond with a list of counter-sanctions on clothing and cars imports.
In the UK, polls on Scotland’s referendum on independence continued to be monitored ahead of the vote next week, including one released by YouGov on Friday showing most against the move.
In China, a report showed aggregate financing, the nation’s broadest measure of new credit, rose to 957.4bn yuan in August from 273.1bn the prior month. It was lower than estimates of 1,135bn, putting pressure on the government as it tries to meet its economic growth.
Aveva, RWE
Aveva Group dropped as the software company said first-half revenue was hurt by currency moves and a fall in demand in South America and parts of Asia.
RWE declined after JPMorgan downgraded its recommendation on the German utility to ‘underweight’ from ‘neutral’.
Novo Nordisk jumped after the Food and Drug Administration advisory panel supported the approval of its weight-loss injection Saxenda.
Lagardere gained after HSBC Holding upgraded the media company to ‘overweight’ from ‘neutral’.
Hexpol advanced after Swedbank AB upgraded the industrial-products maker to ‘buy’ from ‘neutral’.
The euro rose 0.24% to $1.2956.
Brent crude futures fell 0.69% to $97.40 per barrel, according to the ICE.