European Stocks Close On Bright Note On Encouraging Economic Data

European stocks closed on a bright note on Friday, buoyed by easing inflation in the U.S. and Eurozone, encouraging manufacturing data from the Eurozone and the U.S., and better-than-expected manufacturing activity report from China.

Continued optimism the Federal Reserve will begin reducing interest rates from the first quarter of 2024 also helped underpin sentiment.

The pan European Stoxx 600 climbed 0.99%. The U.K.’s FTSE 100 surged 1.01%, Germany’s DAX advanced 1.12% and France’s CAC 40 gained 0.48%, while Switzerland’s SMI ended 0.3% up.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Iceland, Netherlands, Poland, Portugal, Spain, Sweden and Turkiye ended with sharp to moderate gains.

Russia closed moderately lower, and Norway settled flat.

Shares of miners rallied after data showed China’s Caixin manufacturing activity unexpectedly expanded in November. The Caixin manufacturing Purchasing Managers’ Index rose to a three-month high of 50.7 in November from 49.5 in October.

In the UK market, Anglo American Plc rallied more than 7%. Antofagasta surged nearly 5.5%. Glencore, Rio Tinto, Carnival, EasyJet, Royal Mail, Intercontinentals and Whitbread gained 3 to 4%.

Rolls-Royce Holdings, DCC, Ashtead, Melrose Industries, Kingfisher, British Land Company, Smurfit Kappa Group, Mondi, Centrica, Hikma Pharmaceuticals, Persimmon, Lloyds Banking, Ds Smith and Flutter Entertainment closed higher by 2 to 3%.

Tesco dropped more than 2%. Pearson and Just Eat Takeaway.com also ended sharply lower.

In the German market, Covestro climbed more than 5%. Vonovia and Siemens Energy gained about 3.85% and 3.6%, respectively.

Deutsche Post, MTU Aero Engines, Allianz, Zalando, Infineon, HeidelbergCement, Siemens, BASF and Symrise advanced 1.2 to 2.5%.

In Paris, WorldLine surged more than 5.5%. Alstom gained nearly 3.5%. Unibail Rodamco climbed 2.7%, while Essilor, ArcelorMittal, Edenred, Thales, Airbus Group, L’Oreal, AXA, Vinci and Safran ended higher by 1 to 2%.

In economic news, Euro area manufacturing sector remained in the contraction zone but deterioration in production and orders slowed, survey results from S&P Global showes.

The final HCOB manufacturing Purchasing Managers’ Index posted 44.2 in November, up from 43.1 in October. This was the highest since May and above the flash estimate of 43.8.

The downturn in British manufacturing activity softened in November as output and new orders fell at slower rates, survey results from S&P Global revealed.

The Chartered Institute of Procurement & Supply Manufacturing Purchasing Managers’ Index, or PMI, rose to a seven-month high of 47.2 in November from 44.8 in October. The flash estimate was 46.6.

UK house prices declined at the slowest pace in nine months in November as expectations of interest rate cuts in future eased affordability pressures, the mortgage lender Nationwide Building Society said.

House prices registered an annual decline of 2% after easing 3.3% in October. Prices marked the slowest fall since February 2023. They were forecast to drop 2.3%.

Switzerland’s economy rebounded in the third quarter underpinned by exports and consumption, official data showed. Gross domestic product grew 0.3% sequentially, in contrast to the 0.1% fall in the previous three months, the State Secretariat for Economic Affairs said.