European Shares Broadly Higher After Positive Eurozone PMI Data

European stocks were broadly higher in the mid-market trading Thursday amid positive economic data in the region, despite negative sentiments following weakness in Chinese markets.

The eurozone economy is showing signs of picking up momentum in the fourth quarter, as per the Eurozone November preliminary PMI data for the manufacturing and services sectors.

IHS Markit’s purchasing managers’ index, a broad gauge of business activity across the manufacturing and services sectors, rose to 57.5 points in November from 56 in the previous month. The index now stands at its highest level since April 2011.

According To IHS Markit’s chief business economist, Chris Williamson, the business is booming and jobs are being created at fastest rate.

In the U.S., minutes from the Federal Reserve showed that policymakers were positive about the economy and many of them expect a possible hike in U.S. interest rates in the near term, while several were said to be concerned about soft inflation.

Wall Street is closed Thursday for Thanksgiving Day holiday.

In Germany, Social Democrat party leader Martin Schulz is said to be ready for talks with Chancellor Angela Merkel.

Meanwhile, the trading reflects negative sentiment in China following government warnings about runaway prices. Investors are likely concerned that the decline in bond markets would spread into equities.

The pan-European Stoxx Europe 600 index reversed early losses and now up 0.11 percent.

France’s CAC 40 index traded up 36.07 points or 0.67 percent to 5,388.83.

The benchmark DAX in Germany moved up 29.29 points or 0.23 percent to 13,044.33.

The FTSE 100, U.K.’s benchmark for blue-chip stocks, traded down 5.78 points or 0.08 percent to 7,413.24.

In corporate news, shares of thyssenKrupp AG were gaining around 2 percent in Germany after the steel giant Thursday said it expects clearly positive net income and significantly higher adjusted EBIT, a key earnings metric, in fiscal 2018. This was after reporting higher adjusted EBIT, sales and order intake in its fiscal 2017, despite a net loss due to charges.

In London, Centrica dropped 16 percent as it lost about 6 percent of its energy customers in four months and after it projects fiscal year adjusted earnings below market consensus.

Telecom Italia shares rose 6 percent on speculation about a possible spin-off of its telephone network. The company said it would work with Rome under special “golden powers” to protect it as a strategic asset.

by RTT Staff Writer

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