Investing.com – European equities showed mixed trade on Monday as investors digested positive Chinese data and kept an eye on earnings, all while the second round of Brexit talks started up.
A stronger-than-expected second quarter gross domestic product (GDP) reading out overnight from China helped to buoy bullish sentiment.
The world’s second largest economy grew 6.9% in the April to June period, beating expectations for the expansion to ease to 6.8%.
Back in Europe, euro zone headline inflation went unrevised with June showing an annualized increase of 1.3% and core inflation steady at 1.1%, ahead of the European Central Bank’s monetary policy decision this Thursday.
The British and EU Brexit negotiators met on Monday, pledging to "get down to work" in negotiations on the U.K.'s divorce terms from the European Union.
"We made a good start last month but we are now getting into the substance of the matter," British Brexit Secretary David Davis told reporters as he was welcomed at the European Commission in Brussels by the EU negotiator Michel Barnier.
Telenor (OL:TEL) was the second largest gainer, shooting up nearly 8% after the Norwegian telecommunications company raised its margin forecast for 2017 after reporting a strong second quarter.
At the bottom of the index, Getinge (ST:GETIb) fell more than 7% after the Swedish medical technology firm reported weaker-than-expected earnings.
GEA Group (DE:G1AG) followed at the tail end of the index with losses of 6% after the German food technology group lowered its 2017 guidance after a weak second quarter.
Meanwhile, oil prices edged lower on Monday as concerns over the global supply cut continued to support bearish sentiment.
U.S. drillers added two oil rigs in the week to July 14, energy services company Baker Hughes announced on Friday. This brings the total count up to 765, the most since April 2015, underlining concern that the ongoing rebound in U.S. shale production is derailing efforts by other major producers to rebalance the market.
Financial stocks were under pressure, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) fell 0.84% and 0.84%, respectively, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) traded down 0.21% and 0.67%, respectively.
Among peripheral lenders, Italian banks Intesa Sanpaolo (MI:ISP) gained 0.14% but rival Unicredit (MI:CRDI) dropped 0.35% while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) fell 0.96% and 1.14%, respectively.
In London, the commodity-heavy FTSE 100 advanced 0.22%, as exporters on the index benefitted from a weaker pound that increase earnings when foreign profits are brought back to the U.K.
Financial stocks saw mixed trade, with shares in HSBC Holdings (LON:HSBA) up 0.34% while Royal Bank of Scotland (LON:RBS) fell 0.36%, Lloyds Banking (LON:LLOY) lost 0.37% and Barclays (LON:BARC) traded down 0.53%.
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