Europe open: Stocks fall ahead of UK GDP data
Stocks in the euro-area declined following an overnight retreat Stateside and ahead of the release of official data that is expected to show the UK economy slowed in the first quarter.
Economists predict the Office for National Statistics report at 09:30 London time will reveal gross domestic product (GDP) rose 2.6% year-on-year in the first quarter, easing back from 3% growth the previous three months.
The report follows a raft of weak data from the manufacturing and construction sectors, adding pressure on the Conservative party ahead of the 7 May general election.
In other news, China’s central bank is reportedly set to launch further monetary policy easing measures in a bid to ease debt restructurings.
The plan, which could be put in place in the next couple of months, the Wall Street Journal said, will allow Chinese banks to swap local-government bailout bonds for loans as a way to boost liquidity and lending.
Copper prices moved 0.63% higher following the report.
Meanwhile, Greece remains under close watch after the government reshuffled its negotiating team, effectively sidelining finance minister Yanis Varoufakis who has been criticised for his lack of progress in making a deal with creditors.
The news sent European stocks higher on Monday on optimism that talks would speed up towards reaching an agreement.
“We may have to wait for a week or two for the deals to be thrashed out but at least the people in charge of the negotiation process are now experienced in these kinds of discussions,” said senior market analyst at Oanda, Craig Erlam.
“It makes a deal far more likely in time for the next eurogroup meeting which takes place on 11 May.”
The euro was down 0.11% to $1.0879 in morning trade.
Orange sours on quarterly results
Orange plunged after reporting a drop in quarterly sales and earnings, reflecting stiff competition in its European markets.
Commerzbank AG slumped after saying it plans to sell €1.4bn of shares to boost capital after a US fine reduced its buffers.
Daimler AG advanced after posting a 41% jump in first-quarter operating profit thanks to increasing demand.
BP was a high riser after reporting a first-quarter profit that beat analysts’ estimates.
Spain’s Banco Santander SA rallied after reporting a 32% gain in first-quarter profit.
Brent crude fell 0.7% to $64.32 per barrel at 09:04 London time, according to the ICE.