European stocks showed mixed results on Thursday, reversing early gains. Investors continued evaluating potential central bank actions concerning interest rates, influenced by recent economic data and the Federal Reserve's latest policy meeting minutes released on Wednesday.
The minutes revealed that policymakers expect to maintain interest rates at their current levels longer than previously anticipated.
The pan-European Stoxx 600 inched up by 0.07%. Germany's DAX and France's CAC 40 modestly advanced by 0.06% and 0.13%, respectively, while the UK's FTSE 100 dropped by 0.37%. Switzerland's SMI saw a marginal gain of 0.07%.
Other European markets, including Austria, Denmark, Greece, the Netherlands, Norway, and Sweden, closed higher. In contrast, Belgium, Finland, Iceland, Poland, Portugal, Russia, Spain, and Turkey ended the day in negative territory.
In the UK, St. James's Place rose approximately 4.8%. Scottish Mortgage, Rolls-Royce Holdings, Persimmon, Ocado Group, Schroders, Taylor Wimpey, BAE Systems, Barclays, Marks & Spencer, Barratt Developments, and Melrose Industries climbed between 1.4% and 3.5%.
Hargreaves Lansdown surged by 13.4% after the investment platform rejected an unexpected takeover offer from private equity bidders.
National Grid shares plummeted almost 11% following its announcement to raise around £7 billion ($8.9 billion) through a fully underwritten rights issue of 1.09 billion new shares.
RS Group declined 6.5%, while Severn Trent fell by 5.15%, and United Utilities concluded nearly 5% lower. Smith & Nephew, Whitbread, Flutter Entertainment, Unite Group, Croda International, Centrica, Land Securities, Sainsbury's, and NatWest Group decreased by 2% to 3.1%. Despite strong Q1 results, Aviva dipped by 2.1%.
In Germany, MTU Aero Engines, Fresenius, Siemens Energy, HeidelbergCement, and Siemens appreciated between 2% and 3.1%. Rheinmetall, SAP, and Infineon also posted significant gains. However, Puma, Bayer, Vonovia, Zalando, E.ON, Deutsche Telekom, Porsche, Munich RE, Deutsche Post, and Adidas saw declines between 1% and 3%.
In France, Capgemini surged nearly 3%, while Publicis Groupe, Legrand, Saint-Gobain, Safran, Schneider Electric, and Thales advanced between 1% and 2%. Eurofins Scientific dropped over 3.5%, and Teleperformance, Edenred, Dassault Systèmes, Pernod Ricard, and Engie fell between 1% and 3%.
On the economic front, euro area private sector activity grew at the fastest pace in a year in May, with significant increases in new orders, employment, and business confidence, according to flash survey data from S&P Global. The flash composite output index rose to 52.3 in May from 51.7 in April, surpassing economists' forecast of 52.0.
France's private sector unexpectedly contracted in May after returning to growth in the previous month. The headline HCOB flash composite output index fell to 49.1 in May from 50.5 in April, against the forecasted rise to 51.0. This shift below the neutral 50.0 mark signified a move from expansion to contraction.
Germany's private sector experienced its fastest expansion in a year in May, with the flash HCOB composite output index rising more than expected to 52.2 from 50.6 in April. The anticipated score had been 51.0.
The UK private sector continued expanding in May, supported by a renewed upturn in manufacturing. The composite output index slightly dropped to 52.8 from April's one-year high of 54.1. The overall growth in the British private sector was fueled by a robust rebound in manufacturing output, with the PMI climbing to a 22-month high of 51.3 from 49.1 the previous month.
