European Stocks Fail To Hold Early Gains, Close Flat

(RTTNews) - European stocks closed on a mixed note on Friday, taking a breather of sorts, after recent strong gains amid optimism about further monetary easing by global central banks. Worries about tariff threats eased a bit, but not fully, and investors largely chose to refrain from making significant moves.

Investors digested regional PMI data, which showed some improvement in manufacturing activity in some of the major economies in the region. Data showing a sharp drop in UK consumer confidence hurt a bit.

The GfK Consumer Confidence Index in the UK dropped by 5 points to -22 in January 2025, marking its lowest level since November 2023.

The pan European Stoxx 600 edged down 0.05%. The U.K.'s FTSE 100 closed down 0.73%, and Germany's DAX ended 0.08% down. France's CAC 40 climbed 0.44%, while Switzerland's SMI gained 0.18%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Ireland, Poland and Russia ended higher.

Iceland, Netherlands, Norway, Portugal, Spain, Sweden and Turkiye closed weak.

In the UK market, Diageo rallied 4.25% after the company announced it is reviewing its portfolio, including Guinness beer and a Champagne and Cognac partnership with LVMH, potentially valuing Guinness at over $10 billion.

JD Sports Fashion gained 2.8%. Mondi, Smith (DS), WPP, Antofagasta, Intertek Group, Coca-Cola HBC and Fresnillo closed up 1 to 2%.

British luxury brand Burberry soared nearly 10% after reporting a smaller-than-expected decline in its fiscal third quarter sales.

Marks & Spencer closed down 3.4%. Shell, Centrica, Next, Hiscox, Natwest Group, Severn Trent, Barclays Group, Tesco, Taylor Wimpey, 3i Group, BAE Systems, Vodafone Group, Beazley and National Grid lost 1.4 to 2.3%.

In the German market, Porsche, BASF, Siemens Energy, Zalando and BMW gained 2 to 3%. Mercedes-Benz, HeidelbergCement and Volkswagen climbed 1.5 to 1.7%.

MTU Aero Engines tumbled more than 6%. Vonovia, Deutsche Telekom, Qiagen, Adidas, Siemens Healthineers, Hannover Rueck and RWE lost 1 to 2.5%.

In the French market, Pernod Ricard climbed more than 4.5%. Kering gained nearly 4% and ArcelorMittal closed up by about 3%.

Dassault Systemes, Capgemini, Teleperformance, LVMH, Unibail Rodamco, L'Oreal, Air Liquide, Renault and Stellantis gained 1 to 2%.

Vinci drifted lower by about 1.9%. STMicroElectronics, Veolia, Bouygues, TotalEnergies, AXA and Safran ended moderately lower.

On the economic front, the HCOB Eurozone Composite PMI rose to 50.2 in January of 2025 from 49.6 in the previous month. That was higher than the forecast for a 49.7 score. The HCOB Flash Eurozone Manufacturing PMI rose to 46.1 in January 2025 from 45.1 in December, while the Services PMI edged down to 51.4 in January, from 51.6 a month earlier.

Data from S&P Global showed the HCOB Flash Germany Composite PMI unexpectedly jumped to a 7-month high of 50.1 in January 2025, the highest since June 2024, compared to 48 in December. The reading was expected to come in at 48.8.

The HCOB Germany Manufacturing PMI rose to an 8-month high of 44.1 in January 2025, up from 42.5 in December, while the Services PMI climbed to a six-month high of 52.5 in January, from 51.2 a month earlier.

France's Composite PMI edged up to 48.3 in January 2025, from December's 47.5 and above market forecasts of 47.7, according to preliminary estimates.

The Flash France Manufacturing PMI increased to 45.3 in January 2024, up from 41.9 in December, according to preliminary estimates. The latest reading marked the softest contraction in the French manufacturing sector since last June. The HCOB France Services PMI dropped to 48.9 in January 2025, down from 49.3 in December 2024.

Data showed UK's Composite PMI rose to a 3-month high of 50.9 in January, from a score of 50.4 in December 2024, according to preliminary estimates. The reading was expected to come in with a score of 50.0

The manufacturing PMI for January came in with a score of 48.2 versus 47.0 in December 2024, and higher than an expected score of 46.9%. Meanwhile, the flash score of Services PMI came in at a three-month high of 51.2, up from 51.1 in December, and against an expected reading of 50.8.