Europe close: Stocks falter after deluge of eurozone data
By Josh White
Date: Monday 05 Dec 2022
(Sharecast News) - European shares were still below the waterline by Monday evening, after eurozone retail sales and business survey data showed the regional economy was headed for a recession.
The pan-regional Stoxx 600 closed down 0.37% at 441.64, as Germany's DAX lost 0.56% to 14,447.61 and the CAC 40 in Paris was off 0.67% at 6,696.96.
London's FTSE 100 went against the trend, however, rising 0.15% by the close to settle at 7,567.54.
"It's been a mixed start to the week as investors look towards the recent change of emphasis on a reopening of China's economy away from its zero-Covid approach," said CMC Markets chief market analyst Michael Hewson.
"This more pragmatic approach to Covid by the Chinese government appears to be prompting optimism about the pace of a possible reopening with the likes of Prudential seeing further gains on top of last week's strong performance, and helping to provide an uplift to the FTSE 100.
"Optimism over metals demand has also seen a strong day for miners with Anglo American, Rio Tinto and Glencore edging higher."
There was little in the way of corporate news to drive shares on Monday, with investors instead being treated to a veritable eurozone data dump.
Economic activity in the single-currency area contracted for the fifth month in a row in November, suggesting that the bloc was falling into recession, according to a survey.
The final S&P Global composite purchasing managers' index - which measures activity in both the services and manufacturing sectors - rose to 47.8 from 47.3 in October, in line with the initial estimate.
However, it remained below the 50.0 level that separates contraction from expansion.
The eurozone services business activity index printed at 48.5 in November, down from 48.6 in October and hitting a 21-month low.
S&P Global noted that although November's composite reading was up from October, indicating a softer rate of decline, it marked the longest downturn in the eurozone economy since the recession between 2011 and 2013 that was triggered by the eurozone debt crisis.
October retail sales meanwhile fell 1.8% compared with September.
Non-food products fell by 2.1% month on month and by 1.5% for food, drinks and tobacco, while it grew by 0.3% for automotive fuels.
On a yearly basis, retail trade decreased by 3.9% for food, drinks and tobacco and by 2.6% for non-food products, while it grew by 2.5% for automotive fuels.
Year-on-year the adjusted retail sales index decreased by 2.7% in the euro area and by 2.4% across the 27-member bloc.
In equities, shares in Vodafone Group were down 0.13% in London, reversing earlier gains, after the telecoms giant said chief executive Nick Read would step down at the end of the year and be replaced on an interim basis by finance chief Margherita Della Valle.
UK letter and parcel carrier International Distribution Services slid 4.01% after electricals retailer Currys said over the weekend that it would move its deliveries to another carrier.
Reporting by Josh White for Sharecast.com. Additional reporting by Frank Prenesti.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN