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Europe midday: EZ data hits sentiment as bloc faces recession

Published 05/12/2022, 12:19
Updated 05/12/2022, 12:43
© Reuters Europe midday: EZ data hits sentiment as bloc faces recession
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Sharecast - The pan-regional Stoxx 600 fell 0.2% at 0830 GMT on Monday, with little corporate news to drive shares. Instead investors were treated to a eurozone data dump.

Economic activity in the eurozone contracted in November for the fifth month in a row, suggesting that the bloc is falling into recession, according to a survey.

The final S&P Global composite purchasing managers’ index - which measures activity in both the services and manufacturing sectors - rose to 47.8 from 47.3 in October, in line with the initial estimate. However, it remained below the 50.0 level that separates contraction from expansion.

The eurozone services business activity index printed at 48.5 in November, down from 48.6 in October and hitting a 21-month low.

S&P Global noted that although November’s composite reading was up from October, indicating a softer rate of decline, it marked the longest downturn in the eurozone economy since the recession between 2011 and 2013 that was triggered by the eurozone debt crisis.

October retail sales fell 1.8% compared with September. Non-food products fell by 2.1% month on month and by 1.5% for food, drinks and tobacco, while it grew by 0.3% for automotive fuels.

On a yearly basis, retail trade decreased by 3.9% for food, drinks and tobacco and by 2.6% for non-food products, while it grew by 2.5% for automotive fuels.

Year on year the adjusted retail sales index decreased by 2.7% in the euro area and by 2.4% across the 27-member bloc.

In European equity news, shares in Vodafone (LON:VOD) gained after the mobile telecoms group said chief executive Nick Read would step down at the end of this year and be replaced on an interim basis by finance chief Margherita Della Valle.

UK letter and parcel carrier International Distribution Services fell after retailer Currys on the weekend said it was moving deliveries to an alternative courier.

Reporting by Frank Prenesti for Sharecast.com

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