European Shares Drift Lower With US Debt Concerns, PMI Data In Focus

(RTTNews) - European stocks traded lower on Thursday as investors reacted to a U.S. Treasury sell-off, mixed regional data and some disappointing earnings.

30-year U.S. Treasury yields topped 5.09 percent on deficit fears tied to stalled U.S. budget bill negotiations.

In economic releases, Euro zone's private sector returned to contraction in May, with PMI Composite falling from 50.4 to 49.5, hitting a six-month low.

The Ifo institute's business climate index for Germany rose to 87.5 in May from 86.9 in April, thanks to less gloomy expectations.

France's manufacturing sentiment index dropped to 97 in May from 100 in April on deteriorating global orders and personal production expectations, survey data from the statistical office INSEE showed. The expected score was 99.

U.K. public sector net borrowing rose by GBP 1.0 billion to GBP 20.2 billion in April, marking the highest borrowing since April 2021 and coming above economists' forecast of GBP 18.0 billion, according to data from the Office for National Statistics.

The pan European STOXX 600 fell 0.7 percent to 549.71 after finishing marginally lower on Wednesday.

The German DAX shed 0.6 percent, while France's CAC 40 and the U.K.'s FTSE 100 both were down around 0.7 percent.

Freenet AG shares plummeted 15 percent after the telecommunications firm reported a near 33 percent decline in its first-quarter profit.

Ticketing giant and concert promoter CTS Eventim slumped 11.5 percent after Q1 net income and margins came in below estimates.

British Land Company, a real estate investment and development company, tumbled almost 5 percent after saying it expects earnings to be flat next year.

Similarly, telecommunications company BT Group fell over 1 percent after saying earnings this year will be little changed.

Airline EasyJet lost 3.5 percent after widening its first-half loss.

Johnson Matthey soared 27 percent. The industrial group confirmed that it is in advanced discussions over a potential sale of a unit involved in the production of sustainable aviation fuel.