European shares reverse losses as insurers shine, yields fall

economictimes.indiatimes.com:

Aviva and Admiral Group and by easing bond yields. The pan-European STOXX 600 advanced 0.2%, after closing at its lowest level in more than a month on Tuesday. European insurers added 0.5% as Admiral Group jumped 8.0% after the British motor and home insurer posted a marginal rise in its first-half pre-tax profit.

Aviva rose 2.4% after the British insurer posted an 8% rise in first-half operating profit. Dipping bond yields also helped gains, with German 10-year bond yields coming off a five-month peak. Meanwhile, data showed British inflation slowed, as expected, in July to its lowest annual rate since February 2022, although there were more signs of pressure in core and services prices.

UK's blue-chip FTSE 100 was largely subdued. «The way people are positioned is definitely for U.S. and European inflation to come down rather rapidly, albeit to remain above central banks' targets in the next six to 12 months,» said Julien Lafargue, chief market strategist at Barclays Private Bank.

«The UK is facing the most challenging outlook when it comes to inflation because, taking into consideration some very specific issues, I would say that the UK is facing the aftermath of Brexit.» European luxury firms regained some ground as shares of LVMH added 0.5% after falling for three straight sessions. Retailers extended gains to a third session, rising 0.8%. The STOXX 600, weighed down by signs of slowing growth in China, has underperformed its U.S.