Major European Markets Fail To Hold Early Gains, Close Weak

(RTTNews) - Despite staying positive till about an hour past noon, the major European markets ended lower on Monday as stocks pared gains with investors turning cautious due uncertainty about the pace of economic growth amid rising interest rates.

However, most of the other markets in the region ended notably higher, albeit amid thin volumes.

Hopes of additional stimulus in China helped limit downside.

The pan European Stoxx 600 ened down 0.21%. The U.K.'s FTSE 100 edged down 0.06%, Germany's DAX lost 0.41% and France's CAC ended lower by 0.18%, while Switzerland's SMI drifted down 0.54%.

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

Denmark and Sweden ended weak, while Belgium, Ireland and Russia closed flat.

In the UK market, Astrazeneca tumbled 8% after results from a high-level study of a new cancer medicine lagged expectations.

Smith & Nephew ended 5.76% down. Halma, Melrose Industries, B&M European Value Retail, Flutter Entertainment, Convatec Group and BAE Systems lost 1 to 2.3%.

Ocado Group rallied about 6%. Anglo American Plc climbed 4.3%. Glencore surged 3.25%, while BP, Fresnillo, Antofagasta, ABRDN, Smith (DS), Imperial Brands, Land Securities, Rio Tinto, Mondi, Natwest Group and Sainsbury (J) gained 2 to 3.3%.

In the German market, Continental lost nearly 4%. Siemens, Siemens Healthineers, Puma, Zalando, Merck, Infineon, SAP and Brenntag ended lower by 1.4 to 2.5%.

Vonovia climbed about 2.5%. Fresenius gained 2.2%, while RWE, Deutsche Post, Deutsche Bank and Siemens Energy advanced 1 to 1.25%.

In Paris, Schneider Electric, Hermes International, Dassault Systemes, Essilor, Safran and Legrand lost 1 to 2%.

WorldLine rallied more than 3.5%. TotalEnergies, Vivendi, Stellantis, BNP Paribas, Societe Generale and Teleperformance lost 1 to 1.81%.

In economic news, the downturn in the euro area manufacturing sector intensified in June with the sharp reductions in production and orders, reflecting the impact of monetary policy tightening in the private sector.

The final HCOB manufacturing Purchasing Managers' Index, or PMI, declined to 43.4 in June from 44.8 in May, survey data from S&P Global showed Monday. The score was also below the initial estimate of 43.6. A reading below 50 suggests contraction in the sector.

The sector shrank for the twelfth straight month. The headline figure showed the biggest contraction in manufacturing activity since May 2020.

Despite easing price and supply chain pressures, the UK manufacturing activity shrank further in June amid an uncertain outlook for both domestic and foreign orders, final survey results from S&P Global and the Chartered Institute of Procurement & Supply showed.

The CIPS Purchasing Managers' Index, or PMI, for manufacturing declined to 46.5 in June from 47.1 in the previous month. The score was above the flash estimate of 46.2, but remained the lowest since last December.

A report from the Federal Statistical Office showed Switzerland's consumer price inflation eased for the fourth straight month in June to the lowest level in nearly one-and-a-half years.

The consumer price index, or CPI, climbed 1.7% year-over-year in June, slower than the 2.2% gain in May. This was the weakest rate of increase since January last year, when prices had risen 1.6%.