European stocks slip lower; German data points to weak economy

Investing.com - European stock markets slipped lower Wednesday, with investors fretting following the release of disappointing German economic data.

At 06:35 ET (11:35 GMT), the DAX index in Germany dropped 0.1% and the CAC 40 in France fell 0.7%, and the FTSE 100 in the UK slipped 0.1%.

German industrial orders slumped

German industrial orders fell 5.4% in November, sapped by a decline in large orders, showing that a recovery in the industrial sector is not in sight.

Additionally, German retail sales fell 0.6%, bursting hopes for a boost from pre-Christmas promotions like Black Friday and Cyber Monday, while eurozone consumer confidence contracted in December.

This followed Tuesday's release of eurozone inflation data, which came in as expected, dismissing worries that elevated consumer prices would limit interest rate cuts.

Shell (LON:RDSa) trims Q4 gas production outlook

In corporate news, Shell (LON:SHEL) stock fell 1.6% after the energy giant, the world’s largest trader of liquefied natural gas, trimmed its LNG production outlook for the fourth quarter and said trading results for its chemicals and oil products division are expected to be significantly lower than in the third quarter.

Roche (SIX:RO) stock rose 1.3% after the Swiss healthcare giant said it planned to complete its purchase of US biopharmaceutical company Poseida Therapeutics, in a deal valued at around $1.5 billion.

The acquisition, announced in November, is the latest move by Roche to boost its development pipe-line to offset falling oncology sales.

Pluxee (EPA:PLX) stock advanced 12% after the French voucher and benefits company posted 12.1% organic growth in its first-quarter operating revenue, beating market expectations, while Vallourec (EPA:VLLP) rose almost 5% after the industrial equipment manufacturer achieved its zero net debt target a year ahead of schedule.

Flutter Entertainment (LON:FLTRF) stock dropped 1.3% after the gaming company downgraded its US revenue and profit forecasts for 2024, citing an unprecedented string of favorable results for NFL bettors.

Crude boosted by US inventories draw

Oil prices rose Wednesday, extending a bounce from the prior session as US industry data pointed to a drop in oil inventories, while production by OPEC countries was seen falling.

By 06:35 ET, the US crude futures (WTI) climbed 0.3% to $74.48 a barrel, while the Brent contract rose 0.1% to $77.10 a barrel.

Both contracts were close to their highest levels since mid-October.

Data from the American Petroleum Institute, released on Tuesday, showed that US oil inventories shrank by more than 4 million barrels in the week to January 3, substantially more than expectations for a draw of 250,000 barrels.

The reading marked a second straight week of draws for inventories, if confirmed by official data later in the session, as the world’s biggest fuel consumer saw increased travel during the year-end holiday season.

Additionally, data from Reuters showed oil production by countries in the Organization of Petroleum Exporting Countries fell in December, with maintenance activity in the United Arab Emirates offsetting a production hike in Nigeria.

This article first appeared in Investing.com