Stocks - Europe Mixed; PMI Data Helps But Virus Cases Mount

Stocks - Europe Mixed; PMI Data Helps But Virus Cases Mount

Investing.com  | Jul 03, 2020 09:08

Stocks - Europe Mixed; PMI Data Helps But Virus Cases Mount

By Peter Nurse 

Investing.com - European stock markets traded cautiously fashion Friday, with investors having to weigh up improving economic data against an acceleration in Covid-19 infections, particularly in the U.S.

At 4:10 AM ET (0810 GMT), the DAX in Germany traded 0.2% higher, France's CAC 40 fell 0.1%, the U.K.'s FTSE index was down 0.1%. Volumes are likely to be limited with the U.S. on holiday to celebrate Independence Day.

The final PMI services indices for Europe showed the region picking up but not quite ending its decline, climbing to 48.3 in June from 30.5 the previous month. Typically, a number below 50 indicates that activity is contracting.

Earlier Friday the Chinese service sector showed a clearer improvement, with the Caixin Services Purchasing Managers Index coming in at 58.4 in June, the highest reading in two months.

With the U.S. recording Thursday the addition of 4.8 million jobs in June, above the average forecast of 3 million, there are signs that the global economy is spluttering back into life. 

Yet the danger surrounding the Covid-19 outbreak remains, particularly in America which recorded over 50,000 new cases Thursday, for the second day in a row, threatening to derail the nascent recovery. The U.S. accounts for around a quarter of the 10.8 million coronavirus cases recorded worldwide.

Turning back to Europe, stock in U.K.-based banking giant HSBC (LON:HSBA) fell 0.5% after pledging to boost investments in China even after Beijing launched sweeping new security legislation to crack down on Hong Kong.

Fiat Chrysler (MI:FCHA) stock dropped 0.6% and Peugeot (OTC:PUGOY) stock fell 0.8% after reports that the two are looking at ways to reduce the planned special dividend that was due to be paid to FCA shareholders ahead of their merger.

Germany's Delivery Hero  (DE:DHER) jumped 4.6% after the takeaway food company said its order growth nearly doubled in the second quarter, while spread-betting firm CMC Markets (LON:CMCX) rose 15.3% to a new all-time high after saying it expects full-year profits to be above the upper end of its previous forecast range, due to a sustained rise in client activity driven by market volatility this year.

Oil prices dropped on Friday, after OPEC member Angola said it wouldn't compensate for past quota-busting by cutting output until the fourth quarter. Bigger signatories to the OPEC+ pact on output restraint have said that the planned phased return of idled capacity to world markets is dependent on all members actually delivering the output cuts that they promised.

At 4:10 AM ET, U.S. crude futures traded 1.4% lower at $40.07 a barrel. The international benchmark Brent contract fell 1.4% to $42.55.

Elsewhere, gold futures fell 0.3% to $1,785.25/oz, while EUR/USD traded at 1.1235, flat on the day.

 

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Matt Myer
Matt Myer

Fake made up lies   ... (Read More)

Jul 03, 2020 09:07 GMT· Reply
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.