Europe close: Stocks finish flat but DAX sets another record

(Sharecast News) - European stocks finished more or less flat on Thursday as analysts waded through a barrage of economic data from home and abroad, with losses in Spain, Italy and France offset by another gain in Germany with the DAX continuing to set new record highs. The pan-European Stoxx 600 index closed just 0.02 points higher at 494.61, as it continues to teeter around the all-time closing high of 497.25 reached last week.

The CAC 40 fell 0.34%, the FTSE MIB slipped 0.11% and the IBEX 35 dropped 0.67%, while the FTSE 100 edged 0.07% higher, coming off its earlier highs. However, the DAX rose 0.44%, setting a new high of 17,678.19.

"The morning session saw the FTSE 100 surge from a two-week low, but signs of weakness are returning in the afternoon session," said Chris Beauchamp, market analyst at IG.

"The contrast with the Dax could not be more stark - UK data hasn't been great, but German data has been dire, and yet the latter index has touched a new record high. Flows it seems trump valuation, leaving the FTSE 100 left out once more."

Economic data steals focus

German retail sales fell unexpectedly in January, down 0.4% against expectations of a 0.5% rise, according to official government data. On a yearly basis the fall was 1.4%. The month-on-month decline compared with December's 1.6% fall.

German inflation fell again this month to its lowest level since June 2021, with the February headline rate hitting 2.5% on an annualised basis, compared with 2.9% in January, according to flash estimates released during the session. Investors will be looking ahead to Friday's inflation report for the wider eurozone for signs of easing price pressures across the single-currency region.

Meanwhile, US markets opened strongly after a closely watched gauge of inflation showed that price pressures continues to ease last month, reigniting hopes of a rate cut in the first half of the year. The so-called price deflator for personal consumption expenditures rose by 2.4% year-on-year in January, in line with forecasts following a 2.6% annual increase in December. Meanwhile, the core rate eased to 2.8% from 2.9%, matching economists' expectations.

AB InBev disappoints

Budweiser owner AB InBev, the world's biggest brewer, finished 3% lower after narrowly missing full-year profit and revenue forecasts. Revenues improved 8% year-on-year to $59.4bn, helped by higher beer prices, but still came up short of the $60.5bn expected by analysts, while a 7% rise in EBITDA to $20bn was below the $20.1bn expected.

Consumer healthcare group Haleon surged nearly 6% after forecasting a rise in sales this year.

Ocado gained after swinging back to an underlying profit in 2023 as its joint venture with M&S returned to profit.

German chipmaking tools manufacturer Aixtron slumped 19% despite forecasting further revenue growth for 2024, driven by growing in demand for its new products used in the production of compound semiconductors.