European stock markets edge lower in final session of uncertain August

European shares were slightly negative on Thursday as declines in consumer staples and luxury stocks outweighed gains in real estate and financials including UBS, while a raft of economic data gave a mixed picture of the euro zone.

Recent gains have helped the benchmark STOXX 600 index stave off its worst monthly performance so far this year, but it still declined by almost 3 per cent amid an uncertain picture for interest rate policy.

Dublin

The Iseq rose 0.9 per cent, outperforming the trend across Europe amid decent gains for key stocks. Among the most active stocks, building materials group CRH added 0.9 per cent to close at €53.12, while Flutter Entertainment rose 1.4 per cent to finish at €167.90. Ryanair added 1.7 per cent to €16.20.

It was a good session for Cairn Homes, which soared 6.9 per cent to €1.15. Kerry edged up 0.4 per cent to €86.14, while insulation-maker Kingspan rose 1.3 per cent to €78.08 and packaging group Smurfit Kappa joined in with a 0.7 per cent gain, closing at €38.78.

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But Glanbia was among the few fallers, declining 1 per cent to €15.34.

London

The FTSE 100′s six-day winning streak came to an end, with the blue-chip index falling 0.5 per cent, as stocks were hurt by weak data from China while hawkish remarks from Bank of England chief economist Huw Pill weighed on the sentiment.

The mid-cap FTSE 250 logged a gain of 0.2 per cent, but both indexes marked their worst month since May.

Glencore dropped 2.5 per cent after a media report said dozens of asset managers accused the miner of lying in past share prospectuses to cover up corrupt activities. Its shares were also trading ex-dividend.

Retailers climbed 0.9 per cent, as it was confirmed on Wednesday that Marks & Spencer will rejoin Britain’s FTSE 100 after a four-year hiatus. The stock was up 1.2 per cent.

Online fashion seller Boohoo jumped 7.5 per cent on British sportswear group Frasers raising its stake in the company, a regulatory filing showed.

Europe

The pan-European STOXX 600 closed 0.2 per cent lower, having risen as much as 0.5 per cent earlier in the day.

Swiss bank UBS Group jumped 6.1 per cent, hitting its highest level since 2008, on a sweeping plan to cut over $10 billion in costs, axing 3,000 jobs in Switzerland after taking over stricken rival Credit Suisse.

Rate-sensitive real estate stocks gained 1.6 per cent, while euro zone bond yields fell to a one-week low after data on the bloc’s inflation revealed a mixed picture.

Separate data readings from Germany showed August unemployment rose more than expected, while July retail sales fell unexpectedly. In Frankfurt the DAX rose 0.4 per cent, however.

Pernod Ricard, owner of Mumm champagne and Absolut vodka, dropped 6.7 per cent on warning that sales would decline in the Chinese and US markets in the current quarter.

US

Wall Street’s main indexes edged higher in the first hours of trading after inflation data came in line with estimates, fuelling hopes the Federal Reserve could pause its monetary tightening, while Salesforce shares climbed on upbeat forecasts.

Salesforce rose 3.3 per cent on upbeat revenue forecasts from the cloud-based software provider as it benefits from price hikes and a resilient demand.

All the three main indexes were on course to post losses this month, with the S&P 500 and Nasdaq set for their first monthly decline in five.

Among other stocks, Dollar General slumped 14.7 per cent after the discount retailer cut its annual same-store sales forecast. Dismal manufacturing data from China sent US-listed shares of Chinese companies JD.com and Baidu down 3.1 per cent and 1.8 per cent respectively.

Additional reporting: Reuters