European shares flat, Daimler’s profit warning knocks auto stocks

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 1, 2019. REUTERS/Staff

(Reuters) – European shares were little changed in early trade on Friday, as investors parsed through China trade data that came in at market open, an indicator of global economic growth, while a profit warning from Daimler knocked down auto stocks.

China’s yuan-denominated exports rose 6.1% in the first half of this year from a year earlier, while imports increased 1.4%, customs data showed, which resulted in a trade surplus of 1.23 trillion yuan ($178.94 billion) for the first six months.

The data comes after a spate of disappointing economic reports from around the globe, which showed that the global economy suffered from a protracted U.S.-China trade war that forced major central banks to take a more accommodative stance.

The pan-European stocks benchmark was flat at 0712 GMT with auto stocks .SXAP down 0.6%.

Daimler (DAIGn.DE) slipped 2.7% after the luxury carmaker warned investors it expected to swing to a second-quarter loss before interest and taxes of 1.6 billion euros.

Healthcare stocks .SXDP slipped as drugmakers resumed their slide after the White House said it was ditching a key plan to lower U.S. drug prices and raising the possibility of new measures focused on drugmakers.

Reporting by Susan Mathew in Bengaluru; Editing by Arun Koyyur

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