Investing.com - European stock markets closed mixed in choppy trade Tuesday, as sentiment remained under pressure amid fresh concerns over Spain’s financial crisis despite positive U.S. ISM data.
At the close of European trade, the EURO STOXX 50 added 0.40%, France’s CAC 40 rose 1.07%, while Germany’s DAX 30 dropped 0.15%.
Lifting stock sentiment, service sector activity in the U.S. grew at a slightly faster rate that expected in May, expanding for the 29th consecutive month, industry data showed on Tuesday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index inched up by 0.2 points to 53.7 in May from a reading of 53.5 in April.
Analysts had expected the index to hold steady at 53.5 in May.
On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.
The New Orders Index increased by 2.0 points to 55.5 from 53.5, while the Employment Index decreased by 3.4 points to 50.8 from 54.2, indicating continued growth in employment at a slightly slower rate.
The Prices Index fell by 3.8 points to 49.8 from 53.6, indicating prices increased at a significantly slower rate in May when compared to April.
However the bears came out after Spain’s Treasury Minister Cristobal Montoro said earlier that financial markets were effectively closed to Spain because of the current high level of the country’s borrowing costs.
Meanwhile, revised data showed that the euro zone's services sector contracted at a slightly slower rate than initially expected in May, but still shrank at the fastest pace since June 2009, while another report showed that retail sales in the bloc dropped 1% in April.
In Germany official data showed that factory orders dropped 1.9% in April, compared to expectations for a 1% decline, fanning concerns over the impact of the ongoing sovereign debt crisis on the region’s largest economy.
A much heralded teleconference between finance ministers from the G7 group of industrialized nations concluded without any clear signs of progress in tackling the ongoing sovereign-debt crisis in the euro zone.
Speaking following the talks, Japan’s Finance Minister Jun Azumi said G7 members agreed to work together to deal with problems in Spain, while adding that officials did not discuss the possibility of a Greek exit from the euro area.
Financial stocks were mixed as shares in French lenders BNP Paribas and Societe Generale jumped 1.10% and 1.91%, extending earlier gains, while Germany’s Deutsche Bank tumbled 1.11%.
Bankia, one of Spain’s most talked about lenders for the past few weeks, saw shares rally 3.35% after the country’s budget minister said Spanish banks don’t need an excessive amount of money. Banco Santander climbed 1.32% and BBVA added 0.82%.
Meanwhile, Banco Espirito Santo surged 3.46% after Portugal’s government said it will give more than EUR6.6 billion to Banco Comercial Portugues, Banco BPI and Caixa Geral de Depositos to help them meet capital requirements.
Elsewhere, shares in Swiss group Holcim fell 0.10% after new Chief Executive Bernard Fontana signaled the company could “selectively” dispose of some of its businesses this year as it moves ahead with a cost-cutting program, while the group will restrict spending on expansion.
ThromboGenics plunged 19.40% after the company and its partner BioInvent International stopped developing an anticoagulant drug because it caused too much bleeding in a clinical trial. Shares in BioInvent sank 58.69%.
Markets in the U.K. remained closed due to a national holiday.
In the U.S., equity markets traded higher midsession with the Dow Jones Industrial Average up 0.07%, S&P 500 futures higher by 0.22, while the tech heavy Nasdaq advanced 0.17%.
Investors are anticipating the euro zone interest rate decision, Australian unemployment numbers and the U.S, beige book.on Wednesday,
At the close of European trade, the EURO STOXX 50 added 0.40%, France’s CAC 40 rose 1.07%, while Germany’s DAX 30 dropped 0.15%.
Lifting stock sentiment, service sector activity in the U.S. grew at a slightly faster rate that expected in May, expanding for the 29th consecutive month, industry data showed on Tuesday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index inched up by 0.2 points to 53.7 in May from a reading of 53.5 in April.
Analysts had expected the index to hold steady at 53.5 in May.
On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.
The New Orders Index increased by 2.0 points to 55.5 from 53.5, while the Employment Index decreased by 3.4 points to 50.8 from 54.2, indicating continued growth in employment at a slightly slower rate.
The Prices Index fell by 3.8 points to 49.8 from 53.6, indicating prices increased at a significantly slower rate in May when compared to April.
However the bears came out after Spain’s Treasury Minister Cristobal Montoro said earlier that financial markets were effectively closed to Spain because of the current high level of the country’s borrowing costs.
Meanwhile, revised data showed that the euro zone's services sector contracted at a slightly slower rate than initially expected in May, but still shrank at the fastest pace since June 2009, while another report showed that retail sales in the bloc dropped 1% in April.
In Germany official data showed that factory orders dropped 1.9% in April, compared to expectations for a 1% decline, fanning concerns over the impact of the ongoing sovereign debt crisis on the region’s largest economy.
A much heralded teleconference between finance ministers from the G7 group of industrialized nations concluded without any clear signs of progress in tackling the ongoing sovereign-debt crisis in the euro zone.
Speaking following the talks, Japan’s Finance Minister Jun Azumi said G7 members agreed to work together to deal with problems in Spain, while adding that officials did not discuss the possibility of a Greek exit from the euro area.
Financial stocks were mixed as shares in French lenders BNP Paribas and Societe Generale jumped 1.10% and 1.91%, extending earlier gains, while Germany’s Deutsche Bank tumbled 1.11%.
Bankia, one of Spain’s most talked about lenders for the past few weeks, saw shares rally 3.35% after the country’s budget minister said Spanish banks don’t need an excessive amount of money. Banco Santander climbed 1.32% and BBVA added 0.82%.
Meanwhile, Banco Espirito Santo surged 3.46% after Portugal’s government said it will give more than EUR6.6 billion to Banco Comercial Portugues, Banco BPI and Caixa Geral de Depositos to help them meet capital requirements.
Elsewhere, shares in Swiss group Holcim fell 0.10% after new Chief Executive Bernard Fontana signaled the company could “selectively” dispose of some of its businesses this year as it moves ahead with a cost-cutting program, while the group will restrict spending on expansion.
ThromboGenics plunged 19.40% after the company and its partner BioInvent International stopped developing an anticoagulant drug because it caused too much bleeding in a clinical trial. Shares in BioInvent sank 58.69%.
Markets in the U.K. remained closed due to a national holiday.
In the U.S., equity markets traded higher midsession with the Dow Jones Industrial Average up 0.07%, S&P 500 futures higher by 0.22, while the tech heavy Nasdaq advanced 0.17%.
Investors are anticipating the euro zone interest rate decision, Australian unemployment numbers and the U.S, beige book.on Wednesday,