European markets ended mixed on Thursday as investors largely made cautious moves, reacting to the latest batch of economic data from euro area, and looked ahead to the upcoming U.S. non-farm payroll data, due on Friday.
The pan European Stoxx 600 ended 0.12% down. The U.K.’s FTSE 100 declined 0.61% and France’s CAC 40 slid 0.21%, while Germany’s DAX and Switzerland’s SMI climbed up 0.19% and 0.35%, respectively.
Among other markets in Europe, Austria, Denmark, Finland, Poland and Sweden closed higher.
Belgium, Greece, Iceland, Ireland, Netherlands, Portugal, Russia, Spain and Turkey drifted lower, while Czech Republic and Norway ended flat.
Travel and leisure stocks were under pressure after the UK dropped Portugal from the quarantine-free list and the EU said it would keep travel restrictions on the UK and the US.
In the UK market, Johnson Matthey, Standard Life, Ferguson, Phoenix Group Holdings and Pearson gained 1 to 2.3%. Burberry Group, BP, Entain and Sainsbury (J) closed with modest gains.
On the other hand, IAG shares shed more than 5%, Fresnillo lost 4.9%, National Grid declined 4.1% and B&M lost nearly 4%. Antofagasta, Anglo American Plc, Experian, Glencore, Rolls-Royce Holdings, IHG, BHP Group and Rio Tinto also declined sharply.
In the French market, Technip rose more than 4.5%. Saint Gobain gained about 4.2% and Carrefour moved up 2.3%. Valeo, Michelin, Renault, BNP Paribas and Societe Generale also closed on a firm note.
Air France-KLM shed about 4.6% and Sodexo lost 2.4%, while WorldLine, ArcelorMittal, Capgemini, Safran, Publicis Groupe and STMicroElectronics lost 1 to 2%.
In Germany, BMW rallied nearly 4%. Fresenius Medical Care, Fresenius, Daimler and Continental gained 1.5 to 2%. Lufthansa, MTU Aero Engines, Vonovia, SAP, Merck and Siemens ended with sharp to moderate losses.
In economic news, the euro area private sector growth improved more than initially estimated in May driven by the resurgence in the services economy amid easing of the COVID-19 related restrictions, final data from IHS Markit showed.
The final composite output index rose to 57.1 in May from 53.8 in April. The flash reading was 56.9. The upturn was driven by a noticeable acceleration of growth in services. Services activity grew at the fastest pace in just under three years in May.
The final services Purchasing Managers’ Index came in at 55.2 in May, up from 50.5 in April and the flash score of 55.1.
Germany’s private sector growth accelerated further in May. The final composite output index improved to 56.2, as initially estimated, from 55.8 in April. Likewise, the services PMI advanced to 52.8 from 49.9 in the previous month.
France’s private sector expansion was the strongest since July 2020. The composite output index came in at 57.0, up from 51.6 in the previous month. The reading matched preliminary estimate. Similarly, the final services PMI advanced to 56.6, as estimated, from 50.3 a month ago.
The UK service sector gained further momentum in May on higher spending in response to looser pandemic restrictions, final data from IHS Markit showed.
The Chartered Institute of Procurement & Supply services Purchasing Managers’ Index rose to 62.9 in May from 61.0 in April and exceeded the flash estimate of 61.8.
The score was above the 50.0 neutral level for the third month in a row and signaled the fastest growth for 24 years.
Market Analysis
European Stocks Closed On Mixed Note As Investors Look For Direction
2021-06-03 17:44:48
