Equities Up as EZ Core Inflation Hits Four-year High
European markets are gaining thanks to a rally in miners with Iron ore prices hitting a four-month high after China’s construction data accelerated. This is despite another report which showed China's manufacturing sector cooled slightly in July as foreign demand for Chinese goods slows down.
Plus, Euro zone inflation was stable in July but its core measure is up to a four year high. The figure held steady at a rate of 1.3 per cent in July, comfortably below the ECB’s target rate. The reading was in line with forecasts while core inflation – which strips out food and energy – ticked up to 1.2 per cent from 1.1 per cent. And the euro area jobless rate has dropped to 9.1% in June, down from 9.2% in May. This level was last seen in February 2009.
The number of mortgages being approved in the UK has dropped to a nine-month low according to new figures from the Bank of England. Britain’s also continue to up credit, growing by around 10% per year.
Europe’s biggest bank HSBC reported a rise in its first half profits and announced a share buyback. The British bank reported a 5% rise in pre-tax profit of $10.2bn (£7.8bn) for the first six months of 2017, up by about $500m.
The world’s second biggest beer maker - Heineken’s reported a profit increase today for the first half of 2017 was fueled by both non-and low alcohol drinks in Europe, which enjoyed double-digit sales.
--- Written by Katie Pilbeam, DailyFX