European shares muted ahead of key economic data

European shares were subdued early on Wednesday, ahead of key euro zone economic data and congressional testimony from U.S. Federal Reserve Chair Jerome Powell, while upbeat earnings offset losses on the index.

The pan-European STOXX 600 index was flat by 0809 GMT.

Basic resources were 0.5% higher on support from gold prices, which hit a record peak in the previous session amid rising expectations for U.S. rates easing by mid-year.

Investors look forward to euro zone January retail sales data due at 1000 GMT and Powell’s testimony before Congress later in the day, which could provide insights into the interest rate-cut trajectory.

In corporate updates, Symrise beat core profit estimates in 2023 as the German flavour and fragrance maker implemented a cost management programme, lifting shares by 5%. The broader chemicals index led sectoral gains with a 0.8% rise.

Shares in DHL Group dropped 4% after the German logistics giant forecast its 2024 operating profit above pre-pandemic figures, but the outlook fell short of market consensus amid weaker global trade.