European Equities Close Lower in Thursday Trading; Eurozone Business Activity Swings to Contraction
European stock markets closed lower in Thursday trading as the Stoxx Europe 600 fell 0.64%, Germany's DAX lost 0.51%, the FTSE 100 declined 0.54%, France's CAC 40 was down 0.58%, and the Swiss Market Index dropped 0.89%.
Eurozone business activity fell into contraction territory in May as the seasonally adjusted HCOB Flash Eurozone Composite PMI Output Index declined to 49.5 for the month from 50.4 in April. It was the first time in five months that the index reading was below the 50.0-point threshold that demarcates expansion from contraction.
According to S&P Global, which compiles the index, output in Germany decreased after having risen in each of the first four months of the year as Europe's largest economy slid into contraction territory. Business activity in France, the EU's second-largest economy, declined for the ninth straight month. Meanwhile, business activity in the other euro area countries continued to outperform the largest two economies, S&P Global said.
Business activity expanded the UK in May, S&P said, but remained in contraction as the headline S&P Global Flash UK PMI Composite Output Index rose to 49.4, from 48.5 in April. The firm said the loss in output indicated a minor GDP contraction so far in Q2.
And in corporate news, Deutsche Bank has reduced its exposure to companies that are sensitive to the US tariffs imposed by the Trump administration, Bloomberg reported Thursday, citing Deutsche's chief financial officer, James von Moltke. Deutsche Bank did not immediately respond to MT Newswires' request for comment.
Source : MT Newswires
