Source: Sharecast
Purchasing managers' indices (PMIs) from the eurozone and US painted a mixed picture of private sector activity in May, while other data revealed that the US economy added significantly fewer jobs than expected last month.
Nevertheless, the Stoxx 600 rose 0.5% to 551.02, with tepid gains in Milan and London supported by decent performances in Frankfurt and Paris.
The pan-European index has now jumped 17% since hitting a 52-week low of 469.89 in the second week of April, and is trading close to the all-time closing high of 563.13 reached in early March.
"Investors got another taste of May data, but still seem happy to buy the dip", says Chris Beauchamp, chief market analyst at IG.
"Nobody seemed to care about April data, but May seems to be going the same way too, as investors bet that the tariff pauses lead to a recovery in activity.”
In economic data, final estimates for the S&P Global/Hamburg Commercial Bank’s composite PMI for the eurozone came in at 50.2 in May, down from 50.4 in April but above the flash reading of 49.5 released two weeks ago.
In the US, the ISM services PMI unexpectedly contracted in May for the first time in 11 months, falling to 49.9 from 51.6. This was only the fourth contraction in 60 months since the recovery from the Covid-induced recession began in June 2020.
Meanwhile, private sector employment increased by just 37,000 from April, versus expectations for a 110,000 jump, while April’s gain was revised from 62,000 to 60,000.
Market movers
Remy Cointreau rose 4% in Paris despite the drinks giant pulling its 2029-30 guidance owing to tariff uncertainty, with full-year profits at the upper end of its target range. The company also guided to a return to mid-single-digit organic sales growth for 2025-26.
Shares in Redcare Pharmacy tanked 14% after Kepler Cheuvreux downgraded the stock to 'hold' from 'buy', citing structural risks to the company’s e-prescription momentum.
Airbus shares were up 2% after a report that Chinese airlines are considering ordering hundreds of aircraft as soon as next month.
In the UK, B&M Value tanked by 15% as the discount retailer said profits this year would be flat, according to consensus estimates, adding that 2025 earnings had been hit by poor wage rises for low-paid workers.
Meanwhile, business-critical services provider Marlowe surged 10% as it confirmed it is in talks with outsourcer Mitie Group about a possible takeover.
