19.06.2024 US
848 day since the barbaric invasion of Ukraine

European Stock Indices Rise Despite Decline in Italian PMI

Despite the decline in PMI in Italy and the UK, European stock indices ended the day with gains, amid positive changes in other countries and expectations of ECB rate cuts.

Oleksandr Budariev
Market Quotes
Market Quotes, illustrative photo / Photo: Yorgos Ntrahas on Unsplash

European stock markets ended Monday with gains, despite declines in PMI indices in some countries, reports Interfax-Ukraine.

The German DAX index increased by 0.6%, the French CAC 40 by 0.06%, the Italian FTSE MIB by 0.52%, and the Spanish IBEX 35 by 0.66%. The British FTSE 100 decreased by 0.15%.

Changes in European Indices

The composite index of the largest European companies, Stoxx Europe 600, rose by 0.32%, reaching 519.85 points. Shares of manufacturing companies also showed positive dynamics.

The market capitalization of luxury goods producers increased: LVMH shares rose by 0.4%, Kering by 1.6%, and Burberry by 1%.

PMI Data by Country

The PMI index in Italy's manufacturing sector fell to 45.6 points in May, reaching the lowest level since December 2023.

In Spain, the PMI rose to 54 points, the highest level since March 2022.

In Germany, the May PMI value was 45.4 points, in France - 46.4 points, and in the eurozone - 47.3 points.

In the UK, the index reached 51.2 points, the highest level since July 2022.

Stocks and Deals

Hipgnosis Songs Fund shares rose by 0.4% after American investment fund Blackstone improved its purchase offer to 1.272 billion pounds sterling.

Hipgnosis owns the rights to works by artists such as Leonard Cohen, Shakira, and Red Hot Chili Peppers.

The price of GSK shares fell by 9.5% after the Delaware state court allowed hearings on more than 70,000 cases related to the drug Zantac.

Citi analysts estimate GSK's potential settlement costs at $3 billion.

The value of shares of the energy company Eni decreased by 0.5% after its subsidiary Enilive completed the acquisition of the Spanish gas station network operator Atenoil.

Expectations from the ECB Meeting

Traders are awaiting the results of the European Central Bank's next meeting on Thursday, suggesting that the regulator may cut interest rates.

Despite the latest data on wage growth and service prices, analysts do not forecast a significant impact on the outlook.

Shares of energy companies fell along with oil prices: BP plc lost 2.4%, Shell - 1%, TotalEnergies - 1.6%.

Reminder:

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