European stocks closed with mixed results on Monday as investors continued to digest recent economic data and anticipated further updates on global growth and the interest rate trajectories of major central banks.
Sentiment was dampened by data indicating ongoing contraction in eurozone manufacturing. The HCOB final manufacturing Purchasing Managers' Index for August stood at 45.8, unchanged from June and July, and slightly revised upwards from an initial 45.6, according to final data by S&P Global. This figure, however, remained below the critical 50.0 mark, indicating a continued sharp deterioration in operating conditions since July 2022.
Conversely, the U.K. manufacturing PMI showed positive momentum, finalizing at 52.5 in August compared to 52.1 in July, reaching a 26-month high due to increased output, new orders, and employment.
The pan-European Stoxx 600 edged down by 0.02%. The U.K.'s FTSE 100 declined 0.15%, while Germany's DAX and France's CAC 40 saw gains of 0.13% and 0.2%, respectively. Switzerland's SMI closed up 0.12%.
Across other European markets, Austria, Finland, Greece, the Netherlands, Poland, and Portugal ended higher. Conversely, Denmark, Iceland, Norway, Russia, and Sweden closed on weaker notes, while Belgium and Spain remained flat.
In the U.K. market, RightMove's shares surged 27.5% after Australian digital advertising company REA Group announced it was considering a potential cash and share offer for the British real estate online portal.
Barratt Developments and Auto Trader Group both gained over 3%, with Barratt Developments seeing a rating upgrade from UBS. Other notable performers included Beazley, Vodafone Group, J Sainsbury, Berkeley Group Holdings, Whitbread, Segro, IHG, Mondi, and IMI, all advancing 1-2%.
On the downside, Rolls-Royce Holdings fell approximately 6.5%, while BAE Systems and JD Sports Fashion declined 2.8% and 2.25%, respectively. Endeavour Mining, B&M European Value Retail, Rio Tinto, Croda International, Weir Group, Halma, Entain, and Standard Chartered all lost between 1% and 1.7%.
In Germany, Vonovia gained around 2%, with Deutsche Post, Volkswagen, and Munich RE climbing 1.3% to 1.5%. SAP, Deutsche Telekom, Bayer, Hannover Rueck, and HeidelbergCement also closed higher.
However, Sartorius ended the day down 4.65%, while Zalando and Rheinmetall declined roughly 2.9% and 2.7%, respectively. Daimler Truck Holding, Porsche, MTU Aero Engines, and Adidas also closed notably lower.
In France, Sanofi climbed approximately 3.3% amid news that the pharmaceutical giant plans to initiate discussions on filing its oral BTK inhibitor tolebrutinib for multiple sclerosis. Unibail-Rodamco and Orange also saw significant gains, whereas Teleperformance, Edenred, Thales, and Airbus Group experienced notable declines.
