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European markets mixed with euro zone inflation, Bank of England in focus; BNP tanks 8%

News Team

European stocks were slightly lower early Thursday afternoon after the Bank of England held interest rates steady and eurozone inflation figures gave a mixed picture. 

The pan-European Stoxx 600 was down 0.1% at 2 p.m. in London, pulling back from the two-year highs it scaled in late January. Mining stocks fell 1.3% while oil and gas stocks rose by 1%, following oil prices higher.

The moves followed a midday policy announcement from the BoE, which delivered an unexpected split vote that highlighted the tricky picture facing central banks, as inflation moves closer to target.

Investors have been wading through a flurry of corporate earnings Wednesday, which drove large price moves.

BNP Paribas lost 7% after the French bank reported a quarterly sales miss and pushed back a profit target. It was the largest single-day loss since March last year and shares were briefly halted, according to Reuters.

Shares of Adidas also suffered despite the German retailer posting profits that exceeded the company’s own guidance and that it forecasts will more than double in 2024. The outperformance was due to the retailer’s decision to sell remaining Yeezy stock after terminating ties with the brand’s creator Kanye West. Analysts expected an even stronger outlook.

Volvo Cars meanwhile rocketed to the top of the Stoxx 600 index, after announcing it will stop funding its subsidiary Polestar Automotive.

Preliminary inflation data for the euro zone in January also came out Thursday. Headline inflation eased slightly in January while core figures declined less than expected and services inflation held steady.

Source: https://www.cnbc.com/2024/02/01/european-markets-live-updates-stocks-data-earnings-and-boe-decision.html