The cross regional index remained stagnant for another trading session, reacting negatively to American GDP data. The FTSE continues to climb for a third day in a row, pushed up by resources firms.
Aug. 01, 2013 - TOKYO, Japan -- The Stoxx Europe 600 spent another day hovering around 299, swinging between slightly above and below amid mixed reports. Unemployment in the European Union fell for the first time in more than two years last month from 11% to 10.9%. In Germany retail sales dropped 1.5% contrary to expectations, nullifying the gains made in April and May. This represents the biggest one month drop since December 2012.
The US Commerce Department released its data, showing the GDP in the US grew at a 1.7 annual rate, which beat market expectations. European markets have reacted negatively to the positive data over concerns that the US Federal bank would reduce asset purchases.
The European Union´s statistic office announced that inflation rate was 1.6%, mirroring June´s result. For six months the rate has maintained a lower level than the European Central Bank´s maximum of 2%. European Market Analysts at Koyal Group believe that this will allow the central bank to loosen its monetary policy aiding the currency bloc to come out of this record long recession.
France´s Schneider Electric SA has decided to buy the UK´s Invensys PLC for $5.2 billion. The acquisition will add control and software systems used by industrial manufacturers. Schneider Electric SA is offering £5.02 and will allow shareholders to alter the proportions of shares and cash they are paid. Analysts at Koyal Group expects the purchase to boost annual earnings by 65 million euros.