Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Author
Derick Lim
May 23, 2023 4:13AM ET
US stocks will continue rally
3
0
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Access the Market Tools Trusted by Thousands of Investors Get Started
European stocks weaken as manufacturing PMI results disappoint
Published May 23, 2023 02:07AM ET
Updated May 23, 2023 03:35AM ET
© Reuters.
Investing.com - European stock markets edged lower Tuesday, with uncertainty surrounding U.S. debt ceiling negotiations weighing as well as disappointing European manufacturing sector surveys.
At 03:30 ET (07:30 GMT), the DAX futures contract in Germany traded 0.2% lower, CAC 40 futures in France traded 0.4% lower and the FTSE 100 futures contract in the U.K. fell 0.2%.
Data released Tuesday showed that the French manufacturing sector remained in the doldrums, while its services PMI release slipped from April's levels while remaining in expansionary territory.
Sentiment in the important German manufacturing sector also retreated in May, with its PMI falling to 42.9 from 44.5, but a strong services result helped its composite PMI rise.
Better-than-expected PMI surveys helped boost sentiment in April, but that confidence is draining away as the European Central Bank continues its fight against inflation with further monetary tightening likely.
The ECB still needs to raise its interest rates further to bring inflation down to its medium-term goal of 2%, ECB policymaker Pablo Hernández de Cos said on Monday.
Also weighing, U.S. President Joe Biden and House Speaker Kevin McCarthy ended discussions late Monday with no agreement on how to raise the U.S. government's $31.4 trillion debt ceiling.
Some hints of progress emerged from the talks, with McCarthy saying the meeting was “productive”, but there are less than two weeks before a possible first-ever U.S. government default that would roil the financial markets and likely lead to a global recession.
The European earnings season is coming to a close, but Julius Baer (SIX:BAER) stock fell 8% after the Swiss wealth manager managed to report only modest money inflows after a slow start to the year, struggling to take advantage of UBS’s (SIX:UBSG) takeover of troubled rival Credit Suisse (SIX:CSGN) earlier this year.
Oil prices stabilized Tuesday, with the debt ceiling uncertainty hitting risk sentiment even as the U.S. driving season draws nearer.
U.S. fuel consumption is set to pick up with the start of the summer season, which is usually marked by the Memorial Day weekend. This, coupled with disruptions in Canadian supply due to wildfires in the oil-rich Alberta province, pointed to tighter oil markets in the coming months.
By 03:30 ET, U.S. crude futures traded largely flat at $72.06 a barrel, while the Brent contract was flat at $76.00.
Additionally, gold futures fell 0.9% to $1,958.95/oz, while EUR/USD traded 0.2% lower at 1.0794.
Related Articles
Comments (1)
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.