European Stocks Surge On Positive PMI Index
London: 24 January 2024 (TraderMade): European markets experienced a rise on Wednesday, driven by improved economic activity in the Eurozone as indicated by preliminary purchasing managers' index (PMI) data.
Amid a challenging macro environment, positive earnings reports encourage market participants to focus on company fundamentals and the corporate landscape.
Performers of the Day
The pan-European Stoxx 600 was up 0.9% by midday, with all sectors trading positively. Notably, the tech sector led gains, surging by 3.7%, while mining stocks also saw a 1.7% increase.
- The UK’s FTSE 100 (UK100) slightly edged up by 0.1% to 7532.4
- France’s CAC 40 (FRA40) surged 0.64% to 7450.6
- Germany’s DAX (GER30) climbed by 1.14% to 16863.6 (Rates taken at about 12:43 PM GMT)
Siemens Energy emerged as a significant mover, with an 8.1% jump after surpassing market expectations in its preliminary first-quarter results. The stock led gains on the German DAX 30 index, which gained 1.14%.
Another German company, SAP, saw a 7.7% increase after announcing restructuring plans affecting 8,000 jobs as part of a strategic move toward artificial intelligence growth.
Business Activity Edges
The composite services and manufacturing PMI data for the Eurozone suggested an uptick in business activity, providing a positive outlook ahead of Thursday's upcoming European Central Bank meeting. Additionally, January's UK PMI figures reached their highest level in seven months.
Asia-Pacific and US Stocks
In the Asia-Pacific markets overnight, Hong Kong's Hang Seng index surged nearly 2%, propelled by gains in tech stocks, while other regional markets mostly experienced declines.
US stock futures tied to the tech-heavy Nasdaq 100 rose on Wednesday morning, influenced by Netflix's report of reaching a record subscriber count in the fourth quarter. Overall, the market sentiment was buoyed by positive economic indicators and strong performances in the tech sector.
