Breaking News
0

European shares steady on upbeat PMI data, Italy jumps

Economic IndicatorsAug 22, 2019 04:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Amy Caren Daniel and Shreyashi Sanyal

(Reuters) - European shares traded close to flat on Thursday as upbeat surveys on Germany and the euro zone offset signs that U.S. policymakers had not intended to start a cycle of interest rate cuts with last month's move.

Germany's DAX (GDAXI) shrugged off a weak open, to trade 0.1% higher, after Markit's flash composite Purchasing Managers' Index (PMI), which tracks the manufacturing and services sectors, rose to 51.4 in August, above expectations of 50.5.

The leading indicator also showed French business activity expanded in August, pointing to resilience in the euro zone's two biggest economies after Germany contracted in the second quarter.

A similar survey showed Euro zone business growth picked up a touch in August, helped by brisk services activity and as manufacturing contracted at a slower pace.

The data helped the pan-European STOXX 600 index (STOXX) to recover from solid initial losses to trade just 0.1% lower by 0815 GMT, with Italian stocks (FTMIB) outperforming with a 0.39% rise.

"What we are seeing is the service sector holding up comfortably well while the industrial slump has got more room to run and even possibly deepen," said Holger Schmieding Chief Economist at Berenberg.

"This data is not going make recessionary concerns worse, but it also won't make them vanish anytime soon. We are still far away from any stabilization and it could possibly drag on till we see at least a partial trade deal between the U.S. and China."

Flash surveys from the United States are due later in the day.

Italy reversed earlier losses after Reuters reported President Sergio Mattarella wanted clear signs of a possible deal to form a new government by the end of the day.

"That is actually good news because the immediate challenge for Italy is to come up with a 2020 budget by mid-October, now the 5-Star and Democratic Party (PD) could possibly broker a compromise with the EU which would reduce uncertainty," Schmieding said.

Hopes of stimulus moves by governments and central banks have steadied major stock markets in the past week but most are still on course to end August lower after a two-week sell-off driven by concerns that major economies were heading for recession.

The Federal Reserve minutes on Wednesday showed policymakers were deeply divided over whether to cut rates in July, but united in wanting to signal they were not on a preset path to more cuts that would support economic growth.

Minutes from the European Central Bank's last policy meeting are also due at 11:30 GMT.

Ahead is the Fed's annual Jackson Hole meeting of central bankers, which should provide more clues to the Fed's mood after U.S. President Donald Trump's announcement of additional tariffs on Chinese goods at the start of August.

The biggest gainer on the STOXX was NMC Health Plc (L:NMC), up 26%, after Reuters reported that two groups, including one backed by China's Fosun (HK:0656), have made competing offers to buy a 40% stake.

Shares of Ambu A/S (CO:AMBUb) plunged 15.2%, to the bottom of the STOXX 600, after the company issued its second profit warning in three months.

European shares steady on upbeat PMI data, Italy jumps
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Peter Dee
Peter Dee Aug 22, 2019 5:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Low-low trading volume. Gambler's ANOREXIA.....too many CONFLICTING signals. ( Take The Money And Have A Good Time....Friendship Is Important....PEACE.)
Gerald Arnett
Gerald Arnett Aug 22, 2019 4:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think we are going to he'll in a hang basket eventually
Van Doza
Van Doza Aug 22, 2019 4:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hmmm...by any chance do you write for Reuters as your day job?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email