Global Stock Mixed After U.S. Growth Data

By Josie Cox 

        Global stock markets were mixed Thursday after data showed that the U.S. economy accelerated modestly in the second quarter following a slow start to 2015.
        The Stoxx Europe 600 was 0.6% higher midafternoon in Europe, spurred by some upbeat earnings reports, as investors continued to digest the U.S. Federal Reserve's latest policy statement, in which it refrained from giving a clear signal on when it would raise interest rates.
        Futures contracts pointed to a small opening loss on the S&P 500 after it ended Wednesday 0.7% higher. Futures don't always accurately predict moves after the opening bell.
        U.S. gross domestic product, the broadest measure of goods and services produced across the economy, grew at a 2.3% seasonally adjusted annual rate in the second quarter, data Thursday showed, less than the 2.7% forecast.
        The Commerce Department, however, also said the economy grew at a rate of 0.6% in the first quarter, an upward revision from a previously reported 0.2% contraction.
        "Today's report is not great by any means," said Dan Greenhaus, chief strategist at brokerage firm BTIG. He added, though, that the revisions to first-quarter growth "should keep the Federal Reserve on track to raise rates in September."
        Wednesday's statement from the central bank had flagged concerns that inflation may remain too low for a September rate hike.
        In Europe, shares in Royal Bank of Scotland Group PLC and peer Deutsche Bank AG rose on the back of solid earnings.
        Shares in Royal Dutch Shell PLC rallied too, after the oil company reported a sharp fall in second-quarter profit and said it would cut 6,500 jobs, illustrating the strain that sustained low oil prices are putting on large producers.
        Analysts at Jefferies reiterated in a note their hold recommendation on Shell's stock, citing the company's cost-reduction efforts.
        Separately, Shell said it had agreed to sell a 33.2% stake in its Japanese oil refining unit, Showa Shell Sekiyu KK, to Japan's Idemitsu Kosan Co for Yen169 billion ($1.4 billion).
        Elsewhere, Nokia Oyj shares rose more than 8% before easing back slightly. The Finnish company reported a better-than-expected second-quarter profit, boosted by significantly higher software sales, which offset challenging market conditions.
        In Asia on Thursday, the Shanghai Composite closed down 2.2% after snapping a three-day losing streak on Wednesday, while the Nikkei Stock Average ended the session up 1.1%, helped by a weaker yen.
        Elsewhere in currency markets, the euro was 0.3% lower against the dollar midafternoon in Europe, at $1.094.
        Brent crude was 1.4% higher at $54.14 per barrel. Gold lost 0.9% to trade at $1,083.20 per troy ounce.
        Write to Josie Cox at josie.cox@wsj.com
        (END) Dow Jones Newswires
        July 30, 2015 09:54 ET (13:54 GMT)

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