Europe open: Stocks edge lower ahead of Trump inauguration
European stocks edged lower in early trade, with basic resources in the red following uninspiring Chinese growth figures, as investors eyed the inauguration of US President-elect Donald Trump later in the day.
At 0845 GMT, the benchmark Stoxx Europe 600 index and France’s CAC 40 were down 0.3%, while Germany’s DAX was off 0.4%. Meanwhile, oil prices edged higher, with West Texas Intermediate and Brent crude up 0.5% to $52.37 a barrel and $54.44, respectively.
Accendo Markets’ Mike van Dulken said: “In focus today will be the inauguration of Donald Trump as the 45th President of the United States, with investors hoping that his speech comprehensively outlines his policy plans for the next four years in a scripted rather than lively off the cuff affair.
“Financial deregulation, infrastructure spending and tax reforms will be the key policy topics markets will be hoping receive some dedicated airtime this evening.”
Basic resources were among the worst performers, with the Stoxx 600 sub-index for the sector down 1.2% after disappointing Chinese growth data.
Figures released earlier by the National Bureau of Statistics showed GDP expanded 6.8% on the year in the fourth quarter of 2016. This was ahead of the 6.7% forecasts by economists.
For 2016 as a whole, however, the economy grew 6.7%, within the government’s 6.5% to 7% target but marking the weakest growth in 26 years.
In corporate news, Edenred was on the back foot on news that Colony’s Colday E, the main shareholder, sold its stake in the company.
Chilean copper miner Antofagasta lost ground as it said it will exit the Alto Maipo hydroelectric power project, by selling its 40% stake to partner AES Gener, due to an expected overrun of costs.
FTSE 250 merchant bank Close Brothers nudged up as it expressed confidence over its full-year results and reported growth in its loan book in the five months to the end of December.
Trump’s inauguration is at 1700 GMT.