European Shares Drift Lower On Softer PMI Readings

(RTTNews) - European stocks declined on Friday as investors reacted to weak business activity data from the region.

Eurozone business recovery slowed sharply in June as the manufacturing sector downturn gathered momentum and activity in the services sector deteriorated.

The HCOB's preliminary composite Purchasing Managers' Index, compiled by S&P Global, fell to 50.8 from May's 52.2.

Elsewhere, U.K. private sector growth eased to a seven-month low in June as a slowing of service sector growth offset a stronger performance in manufacturing.

The S&P Global Composite PMI decreased to 51.70 from 53 points in May as some companies put big decisions on hold until after July 4 election.

On the positive side, U.K. retail sales volume grew 2.9 percent on a monthly basis in May, offsetting the 1.8 percent fall in April, official data revealed. Also, British consumer sentiment index advanced to -14 in May from -17 in April, monthly survey data from the market research group GfK showed.

The pan European STOXX 600 dropped half a percent to 516.27 after climbing 0.9 percent on Thursday.

The German DAX, France's CAC 40 and the U.K.'s FTSE 100 all were down around 0.4 percent.

In corporate news, STMicroelectronics N.V. fell more than 2 percent.

The Swiss semiconductor company has launched two share repurchase programs for up to $1.100 billion, to be executed within a three-year period.

Britvic shares soared 10 percent in London. The soft drinks producer has rejected a second acquisition proposal of 1,250 pence per share from Carlsberg Group A/S, a Danish brewer. Shares of the latter tumbled 3.6 percent in Copenhagen.

Zealand Pharma shares soared 19 percent. The drug maker said an early-stage study showed a high dose of its drug helped reduce weight by an average 8.6 percent over 16 weeks.