European Stocks Close Higher On Encouraging Eurozone GDP, Inflation Data

European stocks closed slightly higher on Monday as investors reacted positively to China's State Council announcement about further measures to bolster consumption and economic growth, and encouraging data on Eurozone GDP growth and eurozone inflation.

GDP in the euro area grew 0.3% in the second quarter of 2023 compared to the previous quarter, Eurostat reported.

Separate figures from the statistical office revealed that Eurozone inflation fell in line with expectations to 5.3% year-on-year in July, compared with 5.5% in June.

Germany's retail sales registered an unexpected fall in June, figures from Destatis revealed. Real retail turnover logged a monthly drop of 0.8% in June, confounding expectations for an increase of 0.2%.

Compared to June 2022, the retail sales volume fell 1.6%, which was slower than economists' forecast of 2.7% decrease.

Germany import prices declined at the fastest pace in nearly 14 years in June largely due to the sharp reduction in energy import cost, data published by Destatis showed on Monday. Import prices registered an annual decline of 11.4% annually after a 9.1% decrease in May.

The pan European Stoxx 600 ended 0.12% up. The U.K.'s FTSE 100 edged up 0.07% and Germany's DAX gained 0.29%, while Germany's DAX ended 0.14% down. Switzerland's SMI edged down 0.08%.

Among other markets in Europe, Austria, Czech Republic, Denmark, Iceland, Norway, Poland, Russia and Turkiye closed higher.

Finland and Greece edged up marginally, while Belgium, Netherlands, Portugal and Spain ended weak.

In the UK market, IAG climbed 3.6%. Centrica gained nearly 3%. Weir Group, Scottish Mortgage, RightMove, Antofagasta, Fresnillo, Frasers Group, BP and Glencore gained 1.5 to 2.6%.

Rolls-Royce Holdings ended 4.4% down. Ocado Group drifted down 3.9%, Coca-Cola HBC declined 2.7% and Hargreaves Lansdown ended 2.5% down.

Sainsbury (J), Vodafone Group, BT Group, Prudential, Hiscox and ABRDN lost also ended notably lower.

British building and roofing products supplier Marshalls slumped 2.8% percent after lowering its annual forecast.

In the German market, Sartorius rallied nearly 2.5%. Infineon and Bayer gained 1.6% and 1.4%, respectively.

Siemens Energy lost 2.5%. Munich RE, Hannover Rueck, Covestro, HeidelbergCement, BASF, Mercedes-Benz, Henkel, Beiersdorf and Deutsche Boerse declined 1 to 2%.

In Paris, ArcelorMittal and Sanofi gained about 2.5% and 2.3%, respectively. Unibail Rodamco, TotalEnergies, Essilor and Thales advanced 1.2 to 1.6%.

Teleperformance dropped 2.8%. Bouygues ended nearly 2% down. Danone, Renault, Kering, Capgemini and Pernod Ricard lost 1 to 1.6%.

Shares of Dutch brewer Heineken plunged nearly 8% after the company slashed its 2023 earnings guidance. Peers Diageo and Anheuser-Busch Inbev also ended weak.

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