European Markets Close Mixed as Economic Data Fuels Fed Decision Hopes

European equities concluded Wednesday’s session on a mixed note, with major indices fluctuating between gains and losses as traders processed regional economic data and positioned themselves ahead of the Federal Reserve’s looming policy decision.

The pan-European Stoxx 600 index edged up 0.18%, while Germany’s DAX slipped 0.03% and the U.K.’s FTSE 100 dipped 0.18%. France’s CAC 40 rose 0.15%, contrasting with Switzerland’s SMI, which fell 0.25%.

Across Europe, indices in Belgium, Czech Republic, Denmark, Greece, Iceland, Poland, Russia, Sweden, and Turkiye posted declines, whereas Finland, Ireland, Netherlands, Norway, Portugal, and Spain registered gains.

In the U.K., Metlen Energy & Metals led declines with a drop exceeding 5%, and Sainsbury (J) fell 4.1%. Banking stocks NatWest Group, Standard Chartered, Marks & Spencer, Haleon, ICG, and Barratt Redrow each tumbled 2% to 3%. Conversely, Glencore surged 6%, and Antofagasta climbed nearly 5%, with Anglo American, Berkeley Group, Weir Group, Rolls-Royce, Rio Tinto, Babcock International, Diageo, Burberry, BP, Next, and BAE Systems each advancing 1.2% to 2.5%.

German markets saw E.ON, Infineon, Merck, Rheinmetall, Zalando, Volkswagen, Continental, and Scout24 rise 2.5% to 3%. On the downside, Commerzbank, Mercedes-Benz, BASF, Allianz, Hannover Rück, Deutsche Bank, Siemens Energy, and Symrise fell 1% to 3%.

France’s market featured an 8% surge in Stellantis and a 5% jump in STMicroelectronics, alongside gains for Airbus, Safran, Veolia, Thales, and TotalEnergies. Vinci, ArcelorMittal, Eurofins Scientific, Bouygues, Saint Gobain, BNP Paribas, and AXA dropped 1% to 2%.

Economic data highlighted a strengthening Eurozone private sector, with S&P Global reporting the strongest expansion since May 2023. The HCOB composite PMI climbed to 52.8 in November from 52.5, exceeding expectations. Services activity accelerated to 53.6 from 53.0, though manufacturing growth slowed to a nine-month low.

Germany’s private sector momentum cooled, with its composite PMI dropping to 52.4 from 53.9 in October, while services dipped to 53.1. France’s composite PMI was revised upward to 50.4, its highest since October, driven by services reaching a 1-year high of 51.4. The U.K.’s composite PMI fell to 51.2, marking a seventh consecutive month of expansion, as services slowed to 51.3 and manufacturing expanded for the first time in 14 months.

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