LONDON — European stocks were subdued on Wednesday as concerns around global growth and inflation continue to rattle market sentiment.
The pan-European Stoxx 600 edged 0.2% higher by mid-morning after opening in the red. Tech stocks bounced 1.9% while insurance stocks fell 0.7%.
The subdued start for European markets comes as global trade remains volatile amid uncertainties over inflation, economic growth and surging energy prices.
U.S. stock futures were muted in overnight trading on Tuesday as investors anticipate the start of earnings season and September's consumer inflation report, which is expected to have flared at the same rapid pace as August. Economists expect to see a rise of 0.3%, or a 5.3% annualized rate, when the consumer price index is released Wednesday at 8:30 a.m. ET.
Investors are also bracing for a slew of U.S. earnings, with major banks releasing third-quarter results this week; JPMorgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, Wells Fargo and Citigroup are all due to report, starting Wednesday.
In the meantime, global growth concerns remain in the foreground. On Tuesday, the International Monetary Fund said it was now less optimistic about the global economy for 2021, but said in its latest report that it still sees reasonable growth over the medium term.
In Asia-Pacific markets early Wednesday morning, shares in mainland China were mixed as investors reacted to the release of Chinese trade data for September. The figures showed exports beat expectations but import growth disappointed, according to data released Wednesday by the customs agency.
Energy industry giants will be closely watched later on Wednesday as CNBC's Hadley Gamble moderates a panel with Russian President Vladimir Putin and the CEOs of BP, TotalEnergies, ExxonMobil and Daimler at Russian Energy Week. Watch the event live at 1 p.m. Moscow time/11 a.m. London time on CNBC.com.
On the data front, U.K. GDP was 6.9% higher in August than the same period last year, slightly outstripping a Reuters consensus forecast of 6.7%. The British economy is now 0.8% below its pre-Covid level, according to the Office for National Statistics.
In addition, the IEA's World Energy Outlook 2021 report was released on Wednesday.
Stocks on the move
In terms of individual share price movement in Europe, Just Eat Takeaway shares slid 4.5% after its earnings report.
THG shares returned to the flatline after briefly tumbling more than 10% in early trade following Tuesday's 35% plunge, which was triggered by the British e-commerce company's CEO hitting out at short sellers during a capital markets day.
At the top of the Stoxx 600, French energy company Spie climbed 7.8% after withdrawing from a race to buy utility company Engie's services unit.
British investment firm Man Group jumped 6.8% after a strong earnings report.
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- CNBC's Maggie Fitzgerald and Eustance Huang contributed to this market report.
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October 13, 2021 at 11:33AM
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European markets subdued amid jitters over growth, inflation - CNBC
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