European Stocks Close Lower On Weak Economic Data

(RTTNews) - European stocks closed lower on Monday, weighed down by data showing a slowdown in Eurozone private sector growth, and comments from ECB President Christine Lagarde that the central bank will likely maintain its current policy trajectory.

European stocks had seen some brisk buying last week after U.S. lawmakers passed a bill to raise the debt ceiling and cap government spending.

The pan European Stoxx 600 declined 0.48%. The U.K.'s FTSE 100 edged down 0.1%, Germany's DAX ended down 0.54% and France's CAC 40 drifted down 0.96%, while Switzerland's SMI shed 0.25%.

Among other markets in Europe, Denmark, Iceland, Ireland, Netherlands, Portugal, Russia and Spain ended weak.

Greece and Turkiye closed higher, while Austria, Belgium, Czech Republic, Finland, Norway, Poland and Sweden ended flat.

In the UK market, Ocado Group declined 4.1% and Endeavour Mining shed about 3.7%. Natwest Group, Mondi, RightMove, Rolls-Royce Holdings, Entain, Lloyds Banking Group, Fresnillo, Prudential, Antofagasta and Schrodders lost 1 to 2.5%.

ABRDN and Vodafone Group surged 3.2% and 3.03%, respectively. Airtel Africa, United Utilities, Severn Trent, Smith & Nephew, GSK and BT Group gained 1 to 2%.

In the German market, Zalando dropped nearly 4%. Symrise, Deutsche Bank, Deutsche Boerse, Qiagen, Hannover Rueck, Puma, Infineon, Fresenius, Munich and SAP lost 1 to 2%.

Deutsche Telekom climbed more than 1.5%. Volkswagen, Fresenius Medical Care, Merck and Continental posted moderate losses.

In Paris, Pernod Ricard, Essilor, Teleperformance, Orange and LVMH lost 2 to 2.5%. Hermes International ended nearly 2% down.

Eurofins Scientific, Safran, Airbus Group, Publicis Groupe, Vivendi and Credit Agricole also ended notably lower.

On the economic front, data showed German trade surplus widened to €18.4 billion from €14.9 billion as exports unexpectedly rose 1.2% and imports fell 1.7% in April.

Eurozone business growth slowed in May. HCOB's final Composite Purchasing Managers' Index (PMI), compiled by S&P Global, dropped to a three-month low 52.8 in May from April's 54.1.

Eurozone PPI came in at -3.2% month-on-month in April versus -2.7% expected.

The Eurozone Sentix Investor Confidence index came in a -17.1 in June, dropping from -13.1 booked in May and -9.2 expected.

The UK service sector continued to expand at a solid pace in May amid robust rises in output and new business despite mounting inflationary pressures fueled by higher wage costs, survey data from S&P Global revealed.

The final Chartered Institute of Procurement & Supply services Purchasing Managers' Index dropped to 55.2 in May from 55.9 in April. A reading above 50 indicates expansion in the sector.

The overall private sector expanded further at the start of the second quarter, as the composite index came in at 54.0 in May versus 54.9 in April.