European markets inch higher as investors watch earnings, Bank of England; Adidas down 5%

The pan-European Stoxx 600 inched 0.3% higher in early trade, with tech stocks adding 0.9% while basic resources fell 1.3%. Shares in Asia-Pacific held on to their recent gains in Thursday morning trading, despite uncertainty over Chinese policy and the rapid growth in Covid-19 infections in the region. Stateside, stock futures were little changed in early premarket trade as investors await more corporate earnings and the Labor Department’s official jobs report on Friday.

On the data front in Europe, final PMI (purchasing managers’ index) readings on Wednesday showed euro zone business activity surging in July to its fastest expansion in 15 years. Investors will be watching the Bank of England for its monetary policy decision Thursday. The bank is expected to uphold its massive stimulus program despite continued recovery from the U.K.’s pandemic lows and a rebound in inflation.

Earnings continued guiding sentiment in Europe, with Siemens, Adidas, Merck, Bayer, Intesa Sanpaolo and WPP among the big names reporting Wednesday. Adidas upped its outlook for the year, despite a drop in sales in China as some consumers boycotted the German sportwear brand for its stance against alleged human rights abuses. Shares fell 5.4% in early trade. Pharmaceutical giant Merck KGaA saw its second-quarter profits beat expectations, on the back of increased demand for lab equipment and supplies for developing Covid-19 treatments and vaccines. Merck shares gained 3.6%.

European markets inch higher as investors watch earnings, Bank of England; Adidas down 5%, CNBC, Aug 5