Shutterstock photoThe broad-based major European indices closed mixed in Tuesday's trading session as investors favored homebuilders, while shedding health care and automotive stocks.
In economic news, the UK's Office for Budget Responsibility (OBR) reported economic productivity will experience weak growth over the next five years.
The OBR's March forecast said trend productivity growth would rise slowly to reach 1.8% in 2021. Actual productivity growth averaged 2.1% a year in the precrisis period, but has averaged just 0.2% over the past five years, according to the OBR.
"While we continue to believe that there will be some recovery from the very weak productivity performance of recent years," said the OBR, "the continued disappointing outturns, together with the likelihood that heightened uncertainty will continue to weigh on investment, means that we anticipate significantly reducing our assumption for potential productivity growth over the next five
years."
Elsewhere in the UK , the Office for National Statistics ( ONS ) reported that between Q2 and Q3, the total UK trade (goods and services) deficit widened by GBP6.2 billion ($8.2 billion) to GBP13.2 billion; this was largely due to a switch from a surplus to a deficit on the balance of erratic commodities, such as non-monetary gold, that can have large effects on headline movements and make it difficult to discern underlying trends so users are advised to put more emphasis on the UK trade excluding erratic commodities balance.
Germany exported goods worth EUR103.1 billion ($121.6 billion), and imported goods to the value of EUR83 billion in August, according to the Federal Statistical Office (Destatis). Destatis also reports that German exports increased by 7.2% and imports by 8.5% in August compared to the same time last year. Compared with the previous month, exports increased by 3.1% and imports by 1.2%.
The foreign trade balance showed a surplus of EUR20 billion in August. In August 2016, the surplus amounted to EUR19.6 billion. In calendar and seasonally adjusted terms, the foreign trade balance recorded a surplus of EUR21.6 billion in August.
In France, output slipped back slightly in the manufacturing industry in August, falling 0.4% after rising 0.6% in July, reported the Institute for Statistics and Economic Studies (INSEE). Over the last three months, manufacturing output remained virtually stable in the manufacturing industry, rising only 0.1%.
INSEE said output grew 2.6% in the manufacture of transport equipment , and increased in mining and quarrying, energy, water supply (+0.5%), while remaining virtually unchanged in "other manufacturing," gaining 0.1%. It jumped in the manufacture of coke and refined petroleum products, rising 5.2%, but decreased 1.5% in the manufacture of machinery and equipment goods, and 0.4% in the manufacture of food products and beverages.
In equities, consumer goods company Reckitt Benckiser led the FTSE higher in London, rsing 2.3%, followed by Royal Bank of Scotland, and luxury goods company Burberry Group, which climbed 2.2% each. Home builders Persimmon and Barratt Developments gained 2.1% and 1.8%, while Lloyds Banking Group and HSBC Holdings were up 1.6% and 1.1% respectively.
In Frankfurt, kidney dialysis company Fresenius Medical Care and health care company Fresenius led the DAX lower, falling 2.2% and 1.2% respectively, followed by electricity services provider E.ON, which closed 1% lower. automakers also weighed down the DAX as Daimler, Volkswagen, and BMW lost 0.9%, 0.6%, and 0.5% respectively. Deutsche bank and Commerzbank were down 0.5% and 0.4%.
And in Paris, pharmaceutical company Sanofi and chemicals company Solvay helped nudged the CAC into negative territory, fallnig 1.5% and 1%, followed by semiconductor company STMicroelectronics, which closed 0.9% lower. Banks and automotive stocks aslo burdened the market. BNP Paribas and Credit Agricole were off 0.8% and 0.5%, while autoparts supplier Valeo was down 0.7%, and automakers Renault and Peugeot shed 0.5% and 0.4%.
The FTSE rose 0.40%, the DAX lost 0.21%, and the CAC-40 edged 0.04% lower.
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