European stocks eked out gains on Wednesday, aided by defensive sectors, as uncertainty around China’s stimulus plans kept the mood subdued ahead of key US inflation data later this week.
The continent-wide STOXX 600 index was up 0.1%, as of 0711 GMT, with investors buying into utilities, healthcare and real estate – sectors considered as a safer bet during times of uncertainty.
The benchmark index touched a two-week low in the previous session, with China-exposed mining and luxury sectors taking a beating as investors were disappointed by a lack of fresh stimulus steps from Beijing.
All eyes will be on a news conference by China’s finance ministry on Saturday for new details on fiscal stimulus. Other big catalysts this week include US inflation data on Thursday and the start of US earnings season.
Miners, luxury sector weigh on Europe’s STOXX 600
UK-listed Rio Tinto slipped 0.7% after the miner said it would acquire Arcadium Lithium for $6.7 billion, in a deal that would make it one of the world’s largest lithium producers. Shares of Continental gained nearly 3% after the German automotive supplier forecast profitability in its automotive business to improve in the third quarter.
Struggling German battery maker Varta jumped about 27% after it said Porsche AG would invest in its business unit for large-format lithium-ion cells.
Source: Brecorder
