European Stocks Close On Mixed Note

European stocks ended flat on Monday with data showing a slowdown in business activity in Europe, and an inconclusive election result in Spain rendering the mood cautious.

Investors also looked ahead to key central bank meetings and earnings from tech giants including Meta, Microsoft and Alphabet due this week for directional cues.

The Federal Reserve, European Central Bank and the Bank of Japan are scheduled to announce their monetary policies later this week.

The pan European Stoxx 600 edged up 0.06%. The U.K.’s FTSE 100 ended 0.19% up, and Germany’s DAX crept up 0.08%, and France’s CAC 40 edged down 0.07%, while Switzerland’s SMI lost 0.27%.

Among other markets in Europe, Austria, Czech Republic, Finland, Ireland, Norway, Poland, Portugal, Russia, Sweden amd Turkiye closed higher.

Belgium, Denmark, Greece, Iceland, Netherlands and Spain ended weak.

The HCOB Flash Eurozone Composite PMI Output Index, which gauges activity in the manufacturing and services sector, fell to an eight-month low of 48.9 in July from 49.9 in June. Economists had expected a reading of 49.7. The weaker than expected PMI data supported the case for a lower peak in interest rates.

French and German PMI data also came in weaker than expected, raising fears of a recession.

Elsewhere in the U.K., the S&P Global/CIPS composite Purchasing Managers’ Index showed a preliminary reading of 50.7, down from 52.8 in June.

France’s composite output index slid to 46.6 in July from 47.2 in the previous month. Contraction in output was the second in as many months, suggesting a sustained deterioration in economic conditions.

The services PMI posted 47.4 compared to 48.0 in June. The manufacturing PMI declined to 44.5 in July from 46.0 in the prior month.

At 48.3, Germany’s composite output index moved into sub-50 contraction territory for the first time since January. The reading was seen falling to 50.3 from 50.6 in June.

The services PMI registered 52.0, down from 54.1 in June as well as forecast of 53.1. The manufacturing PMI reached deep into negative territory, at 38.8 compared to 40.6 a month ago. The expected score was 41.0.

In the UK market, Ocado Group soared 14.3% after settling a three-year intellectual property dispute with Norwegian robotics company AutoStore Holdings.

Vodafone Group shares gained more than 4% after reporting better revenue growth in the first quarter and naming a new CFO.

BT Group climbed 2.3%. BP, Persimmon, Airtel Africa, Glencore, Antofagasta, Shell and Prudential gained 1 to 1.7%.

Beazley, Burberry Group, Hargreaves Lansdown, Sage Group, WPP, IAG, Spirax-Sarco Engineering, Unilever, DCC, B&M European Value Retail, Unite Group and Next ended lower by 1 to 3%.

S4 Capital slumped more than 21% after the digital advertising and marketing-services firm cut its annual revenue growth and core profit margin forecasts, citing challenging macroeconomic conditions and cautious clients.

In the German market, Sartorius surged 2.5%. Qiagen, Continental MTU Aero Engines, Merck, Adidas and Deutsche Telekom gained 1 to 2%.

Fresenius and HeidelbergCement both shed about 1.6%. Daimler Truck Holding, SAP, Bayer, Symrise and Henkel lost 0.8 to 1.1%.

In Paris, Societe Generale gained about 2.2%. Renault, Teleperformance, WorldLine, Stellantis, ArcelorMittal and TotalEnergies gained 1.5 to 1.8%.

Airbus Group, Edenred, Michelin, Safran, Orange, Bouygues and BNP Paribas also ended notably higher.

Publicis Groupe, Kering, Capgemini, Essilor and LVMH lost 1 to 2%.

In the Swiss market, Julius Baer jumped more than 8% after reporting strong earnings.

Danish biotech company Bavarian Nordic plummeted 26% after saying that it was ending its respiratory syncytial virus (RSV) vaccine program, following poor trial results.

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