Today European stocks traded with less dynamic, while investors analyzed data on business activity.
The composite index of the largest companies in the region Stoxx Europe 600 fell during trading 0,3% – to 339.42 points.
On Friday research organization Markit Economics released preliminary PMI data for July.
Eurozone private sector expanded at its weakest pace in six years in July. The composite output index fell to 52.9 in July, the 18-month low, from 53.1 in June. However, the index is above the expected level of 52.5. The index signals a slight weakening in the growth of output in the industrial sector and the services sector.
Purchasing Managers’ Index in the services sector fell slightly to 52.7 from 52.8 in June. The index was expected to drop to 52.3. At the same time, the manufacturing PMI fell more than expected to 51.9 from 52.8 in the previous month. Economists had forecast a reading of 52 in July.
“The euro area economy has shown remarkable resilience to Brexit and terrorist attacks in France,” said Chris Williamson, chief economist at Markit. The overall rate of economic growth has remained unchanged to a large extent, suggesting that GDP growth will be weak, but sufficiently stable at annual rate of about 1.5 percent, Williamson said.
At the same time, the UK private sector activity contracted at the strongest pace since the beginning of 2009 after “Brexit”. The composite output index fell to a 87-month low of 47.7 in July from 52.4 in June. Below 50 points showing contraction.
Purchasing Managers’ Index in the services sector fell more than expected to 47.4, 88-month low, from 52.3 in the previous month. The expected level was 48.9. Manufacturing PMI reached 49.1, compared with 52.1 in June, but above the expected level of 47.8. It was the lowest for 41 months.
“The UK economy has suffered because of the sharp fall in output and new orders following the referendum on EU membership, as uncertainty prevailed,” said David Noble. The true extent of the impact remains to be seen in the next month, said Noble.
Shares of the largest mining companies BHP Billiton, Glencore and Anglo American fell by 1.7%, 0.9% and 2.2% amid falling commodity prices.
Price of oil-producing firms Tullow Oil and BP Plc dropped 2.8% and 0.6% respectively. Brent crude quotes during trading on Friday fell below $ 46 a barrel for the first time since mid-May.
Capitalization of Banco de Sabadell SA fell by 6.4%. Net profit fell 31% compared with the 1st quarter and amounted to 173.3 million euros in the second quarter, while the experts polled by FactSet had expected the figure at 235 million euros.
Quotes of the Swiss chocolate manufacturer Lindt fell by 0.2%, despite the fact that the company’s revenue increased by 6.6% in the first half of the year, to 1.5 billion Swiss francs ($ 1.52 billion), while profit increased by 11% , to 72.2 million francs.
British chain stores Marks & Spencer fell 2.6% after Barclays downgraded recommendations on them to the “below the market level.” It became known earlier that retail sales in the UK in June decreased by 0.9% compared to May due to the referendum on withdrawal from the EU and the bad weather, reducing the sale of clothing and food.
The market value of the British operator Vodafone Group Plc Communications jumped 3.6%. Revenues, exchange rates fluctuations and the acquisition of assets in April-June increased by 2.2% in annual terms, while experts expect an average increase of 1.9%.
At the moment:
FTSE 6709.56 9.67 0.14%
DAX 10135.58 -20.63 -0.20%
CAC 4373.86 -2.39 -0.05%
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