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European Markets Finish Mixed

The major European markets have also turned mixed on the day. While the German DAX Index is just below the unchanged line, the U.K.?s FTSE 100 Index and the French CAC 40 Index are both up by 0.1 percent.

In economic news, flash data from IHS Markit showed Germany’s private sector activity to have grown at the fastest pace in six months in August, with the composite output index improving to a score of 55.7 in the month, from 55.0 in
July.

The services Purchasing Managers’ Index rose to 55.2 from 54.1 in July. The score was expected to rise marginally to 54.3.

The manufacturing PMI slid to 56.1 from 56.9 in the previous month. Economists had forecast the index to fall moderately to 56.5.

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Phil Smith, principal economist at IHS Markit said, “German business continued to display remarkable resilience during August, with the latest PMI data going some way to dispel any fears about a global trade slowdown and its impact on the health of the economy.”

Meanwhile, the euro area private sector continued to expand in August, according to IHS Markit. The composite output index rose marginally to 54.4 in August from 54.3 in July. But the score was slightly below the forecast of
54.5. The services Purchasing Managers’ Index also came in at 54.4, up from 54.2 a month ago.

The manufacturing PMI fell unexpectedly to a 21-month low of 54.6 from 55.1 in July. Within the eurozone, growth accelerated in France and Germany but slowed across the rest of the single-currency area.

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Meanwhile, a report from statistical office Insee showed France’s manufacturing confidence to have improved marginally in August after falling in the previous month. The manufacturing confidence index rose to 110 in August from 109 in July, which was revised up from 108.

The index measuring general production expectations rose to 11 in August from 10 in the prior month.

Meanwhile, their personal production expectations weakened to 18 from 23. However, the index remained well above its long-term average.

The balance of industrialists’ opinion on past activity improved notably in August, with the index rising to 19 from 10.

The business climate index that covers the main sectors, remained slightly less favorable in August. The corresponding index edged down to 106 from 107.

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According to a report from IHI Markit, France’s private sector growth accelerated to a four-month high in August, thanks to stronger expansions in both the services and manufacturing sectors.

The composite output index rose to 55.1 in August from 54.4 in July. Importantly, the index remained above the neutral 50.0 mark for a twenty-sixth month in a row. The index was expected to grow to 54.6.

The services Purchasing Managers’ Index climbed to 55.7 in August, as against expectations for a rise to 55.1, from 54.9 in the preceding month. With manufacturers reporting a faster increase in output in August, the manufacturing PMI rose to 53.7 in the month, up from 53.3 in July and higher than the forecast of 53.4.

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Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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