Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Europe midday: Stocks slip into the red on mixed economic data
(Sharecast News) - European stocks slipped into the red by Monday lunchtime, as caution started to set in following five straight days of gains. The Europe Stoxx 600 index was down 0.15% by midday CET, though losses across the continent were only mild with sentiment still hoped by rising optimism that various central banks may have reached the peak of their rate-hiking cycle.
The Stoxx 600 jumped 3.1% last week after both the Federal Reserve and Bank of England kept interest rates unchanged, while the European Central Bank has already indicated that a further hike in rates is unlikely.
"European markets have kicked off the week on a hesitant tone, with traders left wondering whether last week's dramatic surge represents an opportunity to sell or a sign that the bulls are back at the helm," said analyst Joshua Mahony from Scope Markets.
Economic data comes in mixed
Investors were having to digest a barrage of purchasing managers' indices (PMIs) during the morning session.
The final estimate for October's HCOB service-sector PMIs showed downward revisions in France and upwards revisions in Germany, resulting in a headline reading of 47.8 for the wider Eurozone service sector - in line from the 'flash' estimate. As a result, the Eurozone composite PMI was unchanged at 46.5 - though still firmly in negative territory.
"Overall, the PMIs continue to signal downside risks to Eurozone GDP growth, warning that services activity is now faltering, alongside a so-far sustained slowdown in manufacturing," said Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics. "A slowdown in services output was the key driver of the further softening in EZ private sector activity at the start of Q4, amid an unchanged pace of contraction in industry, adding to the evidence that the slowdown in the economy is now becoming more broad-based."
In the UK, the S&P Global/CIPS construction PMI ticked up to 45.6 from 45.0 in September, but below consensus expectations of 46.0 and the second-lowest reading since May 2020.
Germany factory orders unexpectedly rose 0.2% in September, surprising analysts who had pencilled in a 1% decline. However, a substantial downward revisions to August's increase, from 3.9% to just 1.9%, painted a bleak outlook for manufacturing in the fourth quarter.
Meanwhile, the Sentix Eurozone investor sentiment index improved to -18.9 in November, from -21.9 in October - showing that the mood is still subdued but better than the consensus forecast of -22.9.
Ryanair lifts airline stocks
Ryanair was performing well on the news it will pay its first ever dividend, as it posted a jump in first-half profit thanks to record summer traffic and higher fares. In the six months to the end of September, profit after tax rose 59% to €2.18bn, with revenues 30% higher at €8.58bn. Shares were up around 7% by midday.
Sector peers IAG, Easyjet, Deutsche Lufthansa and Air France-KLM were also flying higher.
Telecom Italia was lower after agreeing to offload its landline business to US private equity group KKR for €22bn.
Aerospace group Melrose gained on the announcement that it has signed a new $5bn aftermarket services agreement with engines giant GE Aerospace.
Insurance company Prudential fell after new business sales and profit growth slowed slightly in the third quarter.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.