Global Market News

European Bourses Slump Thursday as Manufacturing, Services Data Hit New Lows

Back

Last updated: 06/23/2022 12:52:28

12:52 PM EDT, 06/23/2022 (MT Newswires) -- European stocks fell for a second straight on Thursday as data showed further signs of a slowing global economy.

Stoxx Europe 600 was down 0.82%, London's FTSE 100 lost 0.97%, the Swiss Market Index fell 0.71%, France's CAC was off 0.56%, and Germany's DAX plunged 1.76%.

S&P Global released manufacturing and services data for Britain, France, Germany and the eurozone, all of which slowed with the exception of the UK's flash services PMI remaining unchanged in June.

In the UK, S&P Global said the country is set for a "troubling combination" of recession and high inflation and that the economy is "starting to look like it is running on empty." The manufacturing index fell to its lowest in 23 months while the flash services PMI remained steady in June at 53.4, but slightly exceeded the market estimate of 53.

Meanwhile, the eurozone's June flash manufacturing PMI hit a 22-month low and the flash services PMI dropped to a five-month low. "The slowdown means the latest data signal a rate of GDP growth of just 0.2% at the end of the second quarter, down sharply from 0.6% at the end of the first quarter, with worse likely to come in the second half of the year. Inflows of new business have stalled, led by a slump in demand for goods and reduced demand for services from cash-strapped consumers in particular," S&P Global Market Intelligence Chief Business Economist Chris Williamson said in a statement.

As expected, the European Parliament on Thursday granted war-torn Ukraine with candidate status to join the European Union, with Parliament President Roberta Metsola saying that not doing so would have "a historically wrong decision."

With Day 120 of the Russia-Ukraine war coming to a close, the UK introduced a new round of sanctions and added more items on its export ban on Russia, while the European Commission and Norway signed an energy cooperation pact to deal with reduced gas deliveries via Nord Stream 1.

In corporate news, Valneva (VALN) resumed trading on the Paris bourse at 4:30 pm CET, with good news that pushed the stock to close at 19.62% in the green. A committee under the European Medicines Agency recommended for the approval of the group's COVID-19 vaccine candidate and the French vaccine maker also said it hopes the commission and member states "make a meaningful order" for the inactivated jab, as an earlier deal fell through and remediation talks are ongoing. Valneva after the market closed reported the closing of Pfizer's (PFE) $95 million equity investment in the company.

http://www.mtnewswires.com
Copyright © 2022 MT Newswires. All rights reserved. MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.




Quotes displayed with 15 minutes delay. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions. Legal Statement. News provided by MT Newswires, a Division of MidnightTrader, Inc. Events Data provided by Wall Street Horizon. ©2021 Wall Street Horizon, Inc.