UK Stocks Shed 0.5% as German Shares Add 1.1%

By Investors Hub

European markets are broadly higher on Tuesday, even as U.K. stocks slipped into the red, hit by a stronger pound after the latest IHS Markit services data showed that British service sector activity expanded at the fastest pace in three months in May.

The IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers’ Index rose to 54.0 in May from 52.8 in April.

Elsewhere, Eurozone private sector expanded at the slowest pace in one-and-a-half years, as initially estimated in May, final data from IHS Markit showed.

The composite output index dropped to 54.1 from 55.1 in April, in line with the flash reading of 54.1. This was the lowest score since November of 2016.

Investors looked ahead to the G-7 summit in Canada later this week as well the June 12th summit in Singapore between U.S. President Donald Trump and North Korean leader Kim Jong Un.

The pan-European Stoxx Europe 600 index is up 0.3 percent after rising 0.3 percent in the previous session.

While the U.K.?s FTSE 100 Index is down by 0.5 percent, the French CAC 40 Index is up by 0.5 percent and the German DAX Index is up by 1.1 percent.

French bank Societe Generale has advanced after announcing the sale of its entire stake in Self Trade Bank.

Philips Electronics NV shares have also moved higher. The Dutch consumer electronics giant announced that it has signed an agreement to acquire EPD Solutions for an upfront cash consideration of 250 million euros and deferred milestone dependent payments.

Italian offshore engineering contractor Saipem has rallied after an upgrade from Morgan Stanley.

On the other hand, Royal Bank of Scotland Group has tumbled after the U.K. government said it would cut its holding in the bank to 62.4 percent from 70.1 percent.