Major European Markets Close Mixed

European stocks turned in a mixed performance on Wednesday as investors stayed cautious and largely refrained from making significant moves.

Uncertainty about pace of economic recovery due to spikes in virus infections and fresh lockdown measures in several countries rendered the mood cautious.

According to reports Germany and France have extended lockdown measures due to a third wave of coronavirus infections. The head of the World Health Organization said recent increases in deaths and cases represent “truly worrying trends.”

Investors were also digesting the latest batch of economic data from major European countries.

The pan European Stoxx 600 edged up 0.02%. The U.K.’s FTSE 100 ended 0.2% up and France’s CAC 40 crept up 0.03%, while Germany’s DAX and Switzerland’s SMI ended lower by 0.35% and 0.31%, respectively.

Among other markets in Europe, Belgium, Denmark, Iceland, Poland and Portugal ended weak, while Austria, Czech Republic, Finland, Greece, Ireland, Netherlands, Norway, Russia, Spain, Sweden and Turkey closed higher.

In the UK market, Taylor Wimpey, Just Eat Takeaway, Scottish Mortgage, Ocado Group and Aveava Group lost 2 to 3.1%. Fresnillo, BT Group, Reckitt Benckiser, Barratt Developments, Bunzl and AstraZeneca also ended notably lower.

On the other hand, IAG, Kingfisher, Whitbread, British Land Company, Rolls-Royce Holdings, Land Securities, Glencore, Anglo American, Lloyds Banking, BP, Barclays Group, Royal Dutch Sell and Melrose Industries gained 1.7 to 4%.

Halma rose sharply after it forecast adjusted pretax profit for the fiscal year to be higher than previous guidance.

In the German market, Volkswagen, Deutsche Wohnen, Continental, Vonovia, Daimler and BMW lost 1 to 3.2%, while Lufthansa, HeidelbergCement, Thyssenkrupp, BASF, MTU Aero Engines and Deutsche Bank closed with strong gains.

In France, Air Liquide, Danone, Orange, Engie and LOreal closed notably lower. ArcelorMittal gained more than 4%, while Air France-KLM, Technip, Unibail Rodamco, Carrefour and Vinci gained 2 to 3%.

In economic releases, The euro area private sector returned to growth in March underpinned by a record expansion in manufacturing as global demand continued to revive from the pandemic, survey results from IHS Markit showed.

The composite output index rose to an eight-month high of 52.5 in March from 48.8 in February. The reading was forecast to climb to 49.1. The score exceeded the neutral level of 50.0 for the first time since last September, suggesting expansion in the private sector.

Germany’s private sector growth accelerated in March driven by a record expansion in manufacturing, flash data from IHS Markit showed.

The flash composite output index rose to a 37-month high of 56.8 from 51.1 in February. The reading was well above economists’ forecast of 51.6.

France’s private sector contracted at a slower pace in March with the decline predominantly driven by service providers, survey results from IHS Markit showed on Wednesday.

The flash composite output index advanced to 49.5 in March from 47.0 in February. The score was forecast to rise moderately to 47.2.

The services Purchasing Managers’ Index came in at 47.8 versus 45.6 in the prior month. Economists had forecast the reading to fall to 45.5. The manufacturing PMI rose to a 39-month high of 58.8 in March, up from 56.1 a month ago and above economists’ forecast of 56.5.

Euro area consumer confidence rose faster than expected in March to its highest level in over a year, preliminary survey data from the European Commission showed.

The flash consumer confidence index climbed to -10.8 from -14.8 in February. Economists had expected an improvement to -14.5. The latest reading for Eurozone was the strongest since February 2020, when it was -6.4.

Data from the Office for National Statistics said U.K. consumer price inflation slowed unexpectedly in February, easing to 0.4% from 0.7% in January. The rate was forecast to rise to 0.8%. Month-on-month, consumer prices edged up 0.1%, in contrast to January’s 0.2% fall.