- B&M down after retailer narrows profit forecast
- Tecan Group up after annual sales beat expectations
- Tesco slips on retaining profit outlook
- STOXX 600 inches up
Jan 9 (Reuters) - European stocks shed early losses to edge higher on Thursday, as gains in miners offset declines in retailers although uncertainty about the monetary policy path and U.S. tariff plans kept bond markets under pressure.
The pan-European STOXX 600 inched up 0.1% as of 1036 GMT, reversing early declines of about 0.5%.
Concern about rising inflation, reduced chances of a drop in interest rates, uncertainty over how U.S. president-elect Donald Trump will conduct foreign or economic policy, and the prospect of trillions of dollars in extra debt sales have sent bond yields soaring around the world this week.
A report about U.S. President-elect Donald Trump considering declaring a national economic emergency to provide legal justification for a series of universal tariffs also hurt market sentiment.
Investors were squarely focussed on Trump's Jan. 20 inauguration to check whether he sticks to his rhetoric on protectionist measures and their implications on the European economy.
"There is hope right now that Trump's threats are more of a tool to initiate negotiations with a punch rather than a complete endgame where he would definitely impose tariffs on Europeans," said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.
"So there is this hope that the things could not get as bad as he pretends they could."
Helping the mood somewhat on Thursday, the German 10-year yield retreated from its session high to trade at 2.53% but still held near its multi-month peak.
Britain continued to remain at the heart of the bond selloff, with the benchmark 10-year yield touching a fresh 2008 high.
The UK mid-cap index tumbled 0.6% to an eight-month low.
Retail stocks were at the forefront of losses, dragged by B&M's 13% fall after the British discount retailer lowered the top end of its annual profit forecast on Thursday.
Other retail stocks in the UK such as Marks & Spencer, Tesco and Greggs fell 6.4%, 1.3% and 10.2%, respectively, following disappointing Christmas trading update.
Countering losses on the index was the mining sector that soared 1.8%, with heavyweight miners Rio Tinto, Anglo American and Antofagasta leading gains.
A 0.8% rise in the oil and gas sector also supported the index.
Tecan Group rose 6.8% after the Swiss life science equipment maker posted annual 2024 sales that surpassed market expectations.
Trading volumes in Europe were lighter than usual, with U.S. markets closed on Thursday to mark a national day of mourning following the death of former President Jimmy Carter.
Reporting by Nikhil Sharma and Sruthi Shankar in Bengaluru; Editing by Eileen Soreng and Mrigank Dhaniwala
Source: Reuters