European Stocks Seen Flat Ahead Of GDP And Inflation Data

Industrial production across the eurozone declined more than expected in June, rounding off a weak second quarter and indicating that lackluster investment continues to restrain economic activity.

Ireland’s industrial production saw highest increase among the member states of the European Union (EU) in June when compared to the same month of 2014, according to figures from Eurostat on Wednesday.

The pan-European Stoxx 600 index wobbled at the open before trading 0.5 percent higher Friday. “With industry accounting for around 20% of gross value added, this could reduce growth by 0.3 percentage points relative to the first quarter when GDP rose by 0.4%”, Capital Economics analysts wrote in a note.

Growth was lower than analyst consensus estimates in both areas.

Traders also eye U.S. reports on producer prices, industrial production and consumer sentiment later in the day to determine whether the Federal Reserve is still on track for a rate hike in the near future.

The Eurozone economy grew at a slower-than-expected pace in the second quarter, data released on Friday showed.

As compared to May, in June this year the production of durable goods decreased by two percent in the euro area and fell by 0.4 percent in the EU-28, while the production of non-durable consumer goods remained stable in the euro area and was down by 0.3 percent in the EU-28.

During the second quarter of 2015, GDP in the United States increased by 0.6% compared with the previous quarter (after +0.2% in the first quarter of 2015).

Of those included, Latvia enjoyed the strongest quarterly growth at 1.2%, while Denmark had the best year-on-year improvement at 4.4%.