European stocks clock weekly decline after lacklustre eurozone PMI

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European stocks clock weekly decline after lacklustre eurozone PMI

On Friday, a basket of European bourses had wrapped up the day in a downbeat note following reveal of a set of dismal PMIs (Purchasing Managers’ Index) data vindicating that the European economy’s sharp turnaround from the pandemic-driven slump might have run out of steam, while the regional pan-European STOXX 600 had reported a weekly percentage decline following media headlines revealing a reawakening of pandemic outbreak across the continent.

In point of fact, an IHS Markit Eurozone composite PMI data released on Friday had revealed that the flash composite PMI (Purchasing Managers’ Index) for eurozone economy had faltered to 51 this month compared to an earlier reading of 54.2 posted on July, while inclinations of stiffer pandemic restrictions across the continent alongside a UK move to elongate its lists of countries which would require a mandatary quarantine upon arrival had poured cold water over investors’ optimisms.

European stock indices sour after lacklustre PMI, rise in pandemic cases

In factuality, Friday’s tumbling of a majority of European stock indices were almost entirely prodded by a lacklustre Markit PMI data, while Frankfurt’s DAX pared earlier gains to end up the day 0.5 per cent lower after PMI data had revealed that the bloc’s No.

1 economy’s service sector activities had unprecedentedly came to a standstill this month, however manufacturing activities had extended gains. Besides, Paris-listed blue-chip stocks soured 0.3 per cent following reveal of a worse-than-anticipated French PMI survey data, while the euro zone blue-chip stocks had winded up the day down by 0.4 per cent.

Citing statistics, while the regional pan-European STOXX 600 had logged a weekly percentage decline of 0.9 per cent, London’s FTSE 100 shed 0.19 per cent to 6,001.89, French CAC 40 had curbed out 0.30 per cent to 4,896.33 and Frankfurt’s DAX had dwindled 0.51 per cent to 12,764.80.

Elsewhere in the Europe, Italy’s FTSE MIB closed the day 0.36 per cent lower to 19,695.43, while Madrid’s benchmark IBEX 35 had shrugged off 0.16 per cent to round off the day at 6,982.10. Meanwhile, citing that the Friday’s PMI data had reaffirmed the beginning of a slowdown in economic recovery, a global market strategist at JPMorgan Asset Management Jai Malhi wrote in a client note, “Today’s euro zone PMI release confirms that while activity is on the mend, the pace of the recovery is slowing.

It’s no coincidence that the recovery is losing pace as concerns over new (coronavirus) infections have risen”.