Europe close: Equities little changed after mixed Eurozone data
European equities were little changed as investors weighed mixed Eurozone data.
Sentiment among consumers in the Eurozone declined this month, according to data from the European Commission. A flash estimate of the consumer confidence indicator fell by 0.9 points to -5.5, from -4.6 in April, worse than the consensus forecast for a smaller fall to -4.8.
Markit's flash manufacturing purchasing managers’ index (PMI) for the Eurozone jumped to a 13-month high of 52.3, better than consensus expectations for a reading of 51.8, but the services PMI dropped to a 4-month low of 53.3 and fell short of expectations for a reading of 53.9.
Germany’s flash manufacturing PMI for May printed at a three-month low of 51.4 from 52.1 in April, while the services PMI came in at five-month low of 52.9 from 54.
“Europe’s biggest exporter is more affected than others by the growth weakness in the US and China,” said Christian Schulz , senior economist at Berenberg. “In addition, German businesses tend to react more sensitively to sources of uncertainty such as the Greek situation than others,” he added.
Meanwhile, minutes from the European Central Bank’s (ECB) 14-15 April meeting showed policymakers agreed that the quantitative easing programme was having a good impact on the Eurozone. Officials also reiterated that governments needed to press ahead with key reforms in order to feel the full benefits of QE, which was put in place to boost the economy and bring inflation back towards the target of just below 2%.
Greek remained in focus, as prime minister Alexis Tsipras was expected to present a debt-restructuring proposal at a two-day summit of EU leaders which began on Thursday in Riga.
In the US, initial jobless claims rose by 10,000 to 274,000 from the previous week, compared with analysts’ expectations for a rise to 270,000.
Miners rally
Mining stocks were in the black, boosted by rising metal prices and weak manufacturing data from China, which have added to expectations of more stimulus from the Chinese central bank.
Data released on Thursday showed that China’s manufacturing sector accelerated less than expected in May, with the HSBC/Markit index rising to 49.1 from a 12-month low of 48.9, but still below expectations for a reading of 49.3.
On the corporate front, shares in London-listed United Utilities edged lower after the company’s full-year results. It posted a rise in underlying profit to £664.3m from £634.6m, on revenue of £1.7bn.
Royal Mail rebounded from earlier losses after delivering a mixed bag of full-year results, with numbers in-line with expectations but lower than anticipated revenue from the core UK parcel business and continued caution about the highly competitive market.
Booker Group advanced after saying it will buy the Londis and Budgens businesses from Musgrave Group.
Raiffeisen Bank International AG dropped after reporting first-quarter profit that almost halved.