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European stocks mostly higher after strong PMI reports; Dax down 0.05%

Published 01/23/2014, 03:40 AM
European stocks mixed to higher after PMI data
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Investing.com - European stocks were mostly higher on Thursday, after the release of positive data out of Germany and France, although a weak manufacturing report from China dampened market sentiment.

During European morning trade, the EURO STOXX 50 edged up 0.07%, France’s CAC 40 rose 0.22%, while Germany’s DAX 30 dipped 0.05%.

Market research group Markit said that its preliminary German manufacturing purchasing managers’ index rose to 56.3 in January from a final reading of 54.3 in December. Analysts had expected the index to inch up to 54.6 this month.

Meanwhile, Germany's preliminary services PMI increased to 53.6 this month from a reading of 53.5 in December. Analysts had expected the index to ease up to 54.0.

The preliminary French manufacturing PMI inched up to 48.8 this month from a reading of 47.0 in December. Analysts had expected the index to rise to 47.5 this month.

France's preliminary services PMI rose to 48.6 in January from 47.8 in December, above expectations for an increase to 48.1.

Earlier in the day, the preliminary reading of China’s HSBC manufacturing purchasing managers’ index fell to a six-month low of 49.6 in January from a final reading of 50.5 in the previous month. Analysts had expected the index to tick up to 50.6.

Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale climbed 0.85% and 1.30%, while Germany's Deutsche Bank advanced 0.86%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander gained 0.61% and 0.69% respectively, while Italy's Unicredit and Intesa Sanpaolo added 0.04% and 0.13%.

Elsewhere, Logitech International soared 12.30% after reporting quarterly profit and sales that exceeded analysts’ estimates.

LEG Immobilien also added to gains, rallying 1.65%, after the residential landlord’s largest shareholder sold a stake of about EUR665 million.

In London, FTSE 100 added 0.10%, supported by gains in the financial sector.

Shares in Barclays climbed 0.80% and Lloyds Banking advanced 0.86%, while the Royal Bank of Scotland jumped 1.55%. HSBC Holdings underperformed however, dropping 0.54%.

Meanwhile, mining stocks were trading broadly lower. BHP Billiton retreated 0.44% and Glencore Xstrata declined 0.65%, while Polymetal and Randgold Resources lost 0.54% and 1.26% respectively.

In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.18% fall, S&P 500 futures signaled a 0.10% loss, while the Nasdaq 100 futures indicated a 0.20% rise.

Later in the day, the euro zone was to release preliminary data on manufacturing and service sector activity. The U.S. was to produce the weekly report on initial jobless claims and a private sector report on existing home sales.

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