European Stocks Close Mixed As Investors Focus On PMI Data, Middle East News

(RTTNews) - European stocks closed mixed on Thursday after a choppy session. Concerns about U.S.-Iran conflict and disappointing regional PMI data weighed on sentiment.

Iranian President Masoud Pezeshkian said Tehran had "consistently honored its commitments" and explored every avenue to avoid war. He insisted that "all paths remain open" from Iran's side as US President Donald Trump said he could wait a few more days for the "right answer".

In a post on X, Pezeshkian said forcing Iran to surrender through coercion was "nothing but an illusion" and argued that "mutual respect in diplomacy is far wiser, safer, and more sustainable than war."

Iran's Supreme Leader Mojtaba Khamenei has reportedly issued a directive that the country's near-weapons-grade uranium should not be sent abroad, hardening Tehran's stance on one of the main US demands at peace talks.

The pan European Stoxx 600 ended 0.04% up. The FTSE 100 edged up 0.11%, while Germany's DAX and France's CAC 40 ended down by 0.53% and 0.39%, respectively. Switzerland's SMI climbed 0.35%.

Among other markets in Europe, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Ireland, Russia and Sweden ended higher.

Poland, Portugal, Spain and Türkiye closed weak, while Austria, Netherlands and Norway ended flat.

In the UK market, 3i Group, SSE, ICG and Babcock International gained 2.6%-3.25%. Centrica, National Grid, Antofagasta, Kingfisher, IG Group, Rio Tinto, Sainsbury (J), Admiral Group and Segro were among the other prominent gainers.

AutoTrader Group tumbled 8.8%. Convatec Group shed 4.95%. BT Group drifted down nearly 5% after logging lower revenue for fiscal 2026 due to a decline in its international business.

Airtel Africa, Whitbread, Weir Group, Intercontinental Hotels Group, Rightmove, Imperial Brands, Melrose Industries, IAG, Vodafone Group and Lion Finance lost 1.6%-2.7%. Endeavour Mining, Lloyds Banking Group, Rolls-Royce holdings and Metlen Energy & Metals also ended notably lower.

In the German market, Merck gained about 3%. Zalando and Symrise moved up 2.7% and 2.5%, respectively. BASF, Adidas, E.ON and Siemens Healthineers also closed notably higher.

Commerzbank ended down 3.4%. Munich RE, Scout24, Rheinmetall, SAP, Hannover RE, Brenntag and Gea Group lost 1.3%-2.4%.

In the French market, Edenred moved up 3.5%. Air Liquide, ArcelorMittal, Pernod Ricard and Sanofi gained 1%-1.6%.

Airbus drifted down 4.2%. Teleperformance eased by about 3%, while Accor, Stellantis, Orange, Societe Generale, Kering, Bouygues, Dassault Systemes, Vinci, Renault, Thales, Danone and Safran lost 1%-2%.

In economic news, Germany's private sector contracted in May amid a backdrop of weakening demand and high inflationary pressures, flash survey data from S&P Global showed.

The flash composite output index fell to 48.6 in May from 48.4 in April. Economists had forecast the index to remain unchanged at 48.4.

Flash survey data from S&P Global showed France's private sector contracted at the sharpest pace in five-and-a-half years in May.

The flash composite output index dropped to 43.5 in May from 47.6 in the prior month. This was the lowest score since November 2020 and also stayed below forecast of 47.7.

The survey showed an accelerated decline in services activity accompanied by a fresh fall in manufacturing output. The services Purchasing Managers' Index dropped unexpectedly to 42.9 in May from 46.5 in the prior month. The score was seen at 46.6.

The manufacturing PMI posted 48.9 compared to 52.8 in the prior month. The reading was expected to fall moderately to 52.1.

Data from S&P Global showed the S&P Global UK Composite PMI fell to 48.5 in May from 52.6 in the previous month, reflecting the first decline in activity in over one year and firmly below market expectations of an expansion of 51.6, according to a preliminary estimate.

The Services PMI dropped to 47.9 in May the lowest in over five years, from 52.7 in April. The Manufacturing PMI increased to 52.4 from 51.8.

The euro area private sector registered a renewed contraction in April as the war in the Middle East took its toll on business activity, flash survey data from S&P Global showed.

The flash composite output index logged 47.5 in May, down from 48.8 in the previous month. The score was expected to remain stable at 48.8.

The services Purchasing Managers' Index dropped to 46.4 from 47.6 in the prior month, while the score was forecast to rise to 47.8. At the same time, the flash manufacturing PMI declined to 51.4 from 52.2 in April. The index remained below forecast of 51.7.