Europe close: Stocks lack direction after subdued session
By Benjamin Chiou
Date: Monday 01 Sep 2025
(Sharecast News) - European stocks finished mixed on Monday, with markets lacking direction and trading rangebound amid an absence of action on Wall Street.
The Stoxx 600 finished just 0.2% higher - rebounding slightly after finishing at its lowest since 12 August on Friday - with flat performances in London, Madrid, Zurich and Paris offset by small gains in Frankfurt and Milan.
Chris Beauchamp, chief market analyst at IG, highlighted a "lacklustre mood" across Europe due to the Labor Day holiday in the US, with equity and bond markets closed Stateside.
"In a world where Nvidia is larger than the UK stock market (and indeed its French and German peers), US holidays continue to act as a drain on liquidity," he said.
Nevertheless, a barrage of economic data kept investors busy on Monday, with manufacturing data released at home and abroad.
Manufacturing PMIs mostly impress
In economic data, the final estimate of the eurozone manufacturing PMI increased to 50.7 last month, up from 49.8 in July and slightly ahead of the preliminary estimate of 50.5. The result marked the first monthly improvement in operating conditions for manufacturers in the single currency union since June 2022, driven by the first monthly increase in new orders in three and a half years.
Over in the UK, the S&P Global manufacturing PMI fell to 47.0 from July's six-month high of 48.0, coming in below 50 for the 11th straight month as new order intakes slumped. Meanwhile, UK mortgage approvals edged just 800 higher to 65,400 in July, according to the Bank of England.
Elsewhere, the RatingDog China manufacturing PMI - formerly known as the Caixin PMI - improved to a five-month high of 50.5 in August, up from 49.5 in July and ahead of market forecasts.
Meanwhile, the jobless rate across the eurozone fell back to a record low in July after being revised higher the previous month, according to data from Eurostat. The seasonally adjusted unemployment rate for the single-currency region was 6.2% last month, as expected and down from 6.3% in June, which was changed from earlier estimates of 6.2%.
Market movers
FTSE 100-listed defence firms BAE Systems, Babcock and Rolls-Royce were on the rise after the UK secured a £10bn deal to supply Norway with at least five new warships. Also in London, precious metals miners Fresnillo, Endeavour and Hochschild shone as silver prices hit a 14-year high and gold prices neared a record high.
German propulsion solutions company Renk Group was a high riser on the same day it announced a new CEO of its Marine and Industry division.
Also in demand in Frankfurt was Gerresheimer as the share price of the cosmetic and pharma packaging firm recovered after its recent sell-off. The company said on Friday that its CFO would be replaced by an external candidate.
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