Written by 8:49 am Europe Economy

European markets open to close, data, news, earnings

UK manufacturing activity beats estimates

U.K. factory activity offered a rare upside surprise in August, with the the S&P Global/CIPS manufacturing PMI coming in at 47.3 against a consensus forecast of 46.0.

Despite outpacing expectations, the reading still represents the worst month for British factories since May 2020, as the country battles a historic cost of living crisis.

– Elliot Smith

Euro zone factory activity contracted in August

Euro zone manufacturing activity contracted for a second consecutive month in August, according to a final S&P Global final manufacturing PMI (purchasing managers’ index) reading on Thursday.

The PMI slipped to 49.6 in August from 49.8 in July, and came in below an initial flash reading of 49.7. The 50 mark separates growth from contraction.

Like many economies, the euro zone faces a cost-of-living crisis fueled by soaring food and energy bills, which are increasingly forcing consumers to curb spending.

– Elliot Smith

Stocks on the move: Glencore down 5%, Reckitt down 4%

Anglo-Swiss mining and commodity trading giant Glencore saw its shares fall more than 5% in early trade to the bottom of the Stoxx 600.

Reckitt Benckiser shares fell 4% after the Anglo-Dutch consumer goods company announced that CEO Laxman Narasimhan will step down at the end of the month after a three year tenure at the helm.

There was little to report by way of positive share price movement in early deals.

– Elliot Smith

CNBC Pro: Goldman Sachs says mutual funds have been on a tear this year. Here’s what they’re buying

“A greater share of mutual funds has outperformed their benchmarks in 2022 than in any year since 2009,” according to Goldman Sachs.

What’s driving the outperformance? And what are these funds buying?

Pro subscribers can read more here.

— Zavier Ong

U.S. 2-year Treasury yield rises to 14-year high

Caixin PMI shows China’s factory activity shrank in August

The results of a private survey showed China’s factory activity contracted in August.

The Caixin/Markit manufacturing Purchasing Managers’ Index came in at 49.5 for August, compared to 50.4 in July.

PMI readings are sequential and represent month-on-month expansion or contraction. The 50-point mark that separates growth from contraction.

China’s official manufacturing PMI for August slightly beat expectations at 49.4.

— Abigail Ng

European markets: Here are the opening calls

European stocks are expected to open cautiously higher on Wednesday with the U.K.’s FTSE index seen 18 points higher at 7,560, Germany’s DAX 33 points higher at 13,944, France’s CAC 40 up 18 points at 6,616 and Italy’s FTSE MIB up 42 points at 23,029, according to data from IG.

Data releases include preliminary euro zone unemployment data for the second quarter as well as second quarter gross domestic product. The latest U.K. inflation numbers for July will be released as well as preliminary second quarter Dutch GDP.

Earnings come from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.

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