European Stocks Close Broadly Higher

(RTTNews) - European markets closed mostly higher on Tuesday with investors digesting the latest batch of regional economic data, and picking up stocks amid expectations of more monetary easing by the Federal Reserve.

Data showing acceleration in Eurozone and Germany's private sector activity in the month of September, and NVIDIA's plans to invest $100 billion in OpenAI aided sentiment.

NVIDIA announced on Monday that is plans to invest up to $100 billion in OpenAI to build next-generation AI data centers.

The pan European Stoxx 600 climbed 0.28%. The U.K.'s FTSE 100 edged down 0.04%, Germany's DAX advanced 0.36% and France's CAC 40 closed 0.54% up. Switzerland's SMI ended 0.19% down.

Among other markets in Europe, Czech Republic, Finland, Greece, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain and Sweden closed higher.

Belgium, Denmark and Turkiye ended weak, while Austria closed flat.

In the UK market, Kingfisher skyrocketed nearly 15% after lifting its expectations for the fiscal year.

Shares of real estate investment trust company Land Securities Land Securities gained about 2.3% after the company backed its annual outlook.

Convatec Group gained nearly 3%. Antofagasta, Howden Joinery, Marks & Spencer, Easyjet, Burberry Group, Endeavour Mining, BP, Barratt Redrow, JD Sports Fashion, Segro, Barclays and DCC gained 1.5 to 2.5%.

Smiths Group climbed up earlier in the session, buoyed by stronger annual profit and announcement of a higher dividend. However, the stock pared its gains susbequently, and closed lower by about 3.4%.

Metlen Energy & Metals ended more than 4% down. St. James's Place, AstraZeneca, Babcock International, British American Tobacco, Admiral Group, Compass Group, Aviva, Fresnillo and Reckitt Benckiser also ended notably lower.

In the German market, Adidas, Volkswagen, Infineon and Mercedes-Benz climbed 2.4 to 3.5%. Gea Group, Brenntag, Merck, Deutsche Post, Daimler Truck Holding and BASF also moved up sharply.

Henkel ended 2.6% down. Commerzbank, Deutsche Boerse, Covestro, Rheinmetall and Heidelberg Materials also ended sharply lower.

In the French market, L'Oreal, LVMH, Stellantis, STMicroElectronics and Teleperformance climbed 3% to 3.6%. Carrefour gained about 2.3%, while Kering, Edenred, ArcelorMittal and Capgemini moved up by 1.3 to 2%.

Sanofi, Safran, Societe Generale, Orange, Bouygues and Engie closed weak.

UK private sector output expanded at the slowest pace in four months in September amid deceleration in services growth along with continued contraction in the manufacturing production, flash survey results from S&P Global revealed on Tuesday.

The composite output index dropped to 51.0 in September from August's 1-year high of 53.5. Nonetheless, a score above 50 indicates expansion in the sector. The expected reading was 53.0.

Higher levels of service sector activity once again contrasted with cutbacks to manufacturing production, the survey said.

The services Purchasing Managers' Index declined to 51.9 from 54.2 in the previous month. The score was forecast to fall to 53.5.

The factory PMI decreased to a 6-month low of 45.4 in September from 49.3 a month ago.

Germany's private sector growth hit a 16-month high in September on a renewed upturn in the service sector, flash survey results from S&P Global revealed on Tuesday.

The HCOB composite output index rose to 52.4 in September, while it was expected to remain unchanged at 50.5.

The reading stayed above the 50.0 threshold for a fourth straight month and signaled the quickest expansion in the private sector since May 2024.

The stronger performance reflected a renewed increase in the service sector business activity that followed a slight decrease in August. The services Purchasing Managers' Index rose to an eight-month high of 52.5 from 49.3 in the previous month. The reading was also above forecast of 49.5.

By contrast, the factory PMI declined to 48.5 from 49.8 in the previous month. The reading was seen at 50.0.

France's private sector showed fresh signs of weakness in September as output dropped at faster rates in both manufacturing and services, flash survey data from S&P Global revealed on Tuesday.

The HCOB composite output index fell unexpectedly to 48.4 from 49.8 in the previous month. The reading was forecast to rise to 49.9.

The score remained below the neutral 50.0 mark for a thirteenth straight month. Moreover, the reading signaled the biggest contraction since April.

There were renewed weakness in both manufacturing and services. The services Purchasing Managers' Index posted 48.9, down from 49.8 in August. The score was seen at 49.7.

Likewise, the manufacturing PMI slid more-than-expected to 48.1 in September from 50.4 a month ago. The score was expected to fall to 50.2.

The HCOB Flash Eurozone Composite Purchasing Managers' Index, compiled by S&P Global, edged up to 51.2 in September from 51.0 in August, marking the ninth consecutive month of growth but new orders stagnated after briefly expanding in August.

While the services sector pulled up business activity, the manufacturing sector slumped back into contraction, clouding the outlook.