news

Europe Stocks Close Lower as Economic Gloom Returns; Euro Zone Business Output Contracts

Federal Reserve Chairman Jerome Powell testifies during the House Financial Services Committee hearing titled “The Federal Reserve’s Semi-Annual Monetary Policy Report,” in Rayburn Building on Wednesday, June 21, 2023. 
Tom Williams | Cq-roll Call, Inc. | Getty Images

This is CNBC's live blog covering European markets.

European stocks closed lower on Wednesday as investors assessed the latest negative signals from the Chinese and EU economies.

The benchmark Stoxx 600 ended down 0.7%, with insurance and utilities stocks falling 1.9% to lead losses.

Watch NBC 4 free wherever you are

Watch button  WATCH HERE

The index has seen narrow movements in the previous three sessions as the mood turns cautious ahead of the second-quarter earnings season.

China's service sector activity slowed considerably in June, according to the Caixin/S&P Global purchasing managers' index survey, although remained in expansion territory for a sixth straight month.

Get Tri-state area news delivered to your inbox with NBC New York's News Headlines newsletter.

Newsletter button  SIGN UP

Meanwhile, PMI figures for the euro zone showed business output contracted in June. S&P Global said the economy "ground to a halt" as support from service sector growth waned, despite easing inflationary pressures.

The survey cited weak demand and an "especially-steep drop in new orders at manufacturers."

Oil prices have retreated over demand jitters since gaining on Monday's announcement of output cuts by Saudi Arabia and Russia. OPEC, the Organisation of the Petroleum Exporting Countries, will hold its international seminar across Wednesday and Thursday.

Elsewhere, the Federal Reserve will release minutes from its latest meeting later Wednesday, providing key clues on the path of rates for markets.

Asia-Pacific markets on Wednesday largely traded lower, while U.S. stocks fell as Wall Street resumed a holiday-shortened week.

Adyen shares fall 4%

Shares of Adyen dipped 4% on Wednesday afternoon after UBS cut its rating for the Dutch online payments firm to neutral from buy.

The stock price is up around 18% year-to-date.

— Sam Meredith

Finimize CEO: Retail investors prefer to manage their own funds

Max Rofagha, CEO of Finimize, says its latest survey shows an empowerment of retail investors which could be a loss of $20 billion for wealth managers.

Stocks on the move: ams-OSRAM down, Evotec up

Ams-Osram, the German maker of electric lights, fell 10.2% in morning trade. Swiss business news agency Awp reported that market observers had suggested nerves over the impact of new Chinese metals export restrictions may be at play.

At the top of Stoxx 600, risers were German drug developer Evotec, which climbed 3.7% after securing a $74 million contract with the U.S. Department of Defense.

— Jenni Reid

Oil market will start tightening, Energy Aspects’ Amrita Sen says

Oil market will start tightening, Energy Aspects' founder Amrita Sen tells CNBC's Dan Murphy in Vienna ahead of OPEC's seminar.

Europe stocks open lower

European stocks were lower in early trade, with the Stoxx 600 index down 0.6% at 8:05 a.m. London time.

All sectors were in the red as mining stocks led declines, falling 1.2% after Chinese service activity missed expectations in a sign of a slowing economic recovery.

Germany's DAX and France's CAC 40 were both around 0.6% lower, while the U.K.'s FTSE 100 was down 0.4%.

— Jenni Reid

German auto manufacturers' expectations plunge

Future business sentiment among German automotive manufacturers fell sharply in June, according to a survey by the ifo Institute.

While a score assessing their current situation rose to 37.5 points from 28.4 points, expectations dropped to minus 56.9 points from minus 10.3 points.

The fifth consecutive decline takes expectations to their lower level since the 2008 global financial crisis.

Automotive suppliers said their current situation as well as future expectations were worse as they struggle with a lack of demand from abroad.

— Jenni Reid

European markets: Here are the opening calls

European stocks are heading for a fall at Tuesday's open. The U.K.'s FTSE 100 is set to open 5 points lower at 7,512, according to data from ig.com. Germany's DAX is on course to dip 22 points to 16,012, with France's CAC down 15 points to 7,349 and 48 points at 28,416.

— Jenni Reid

CNBC Pro: Goldman Sachs says A.I. will 'super-charge' music creation and names 5 stocks to buy

The music industry is set for a radical shift due in part to generative AI, according to Goldman Sachs, which described the new technology as providing "significant opportunities" for the sector.

It named five buy-rated stocks to play the trend. All of the stocks are on its conviction list of top stocks.

Pro subscribers can read more here.

— Lucy Handley

China services activity remains in expansion territory as growth rate slows

China's service sector activity remained in positive territory for a sixth straight month, according to a Caixin/S&P Global survey released on Wednesday.

The Caixin services purchasing managers index for June came in at 53.9, a slower rate of expansion than the 57.1 recorded in May.

The survey said "business activity and new orders both expanded at notably slower rates than seen in May, as some firms reported softer than expected market demand."

— Lim Hui Jie

CNBC Pro: Goldman's list of top picks to buy right now includes these 6 Asian stocks

Goldman Sachs is positive on a number of Asian markets right now, despite what it expects to be a "subdued" third quarter of the year.

The bank screened for global stocks with improving earnings growth momentum, stable earnings per share revisions and reasonable valuations.

The list includes Alibaba and more.

CNBC Pro subscribers can read more here.

— Weizhen Tan

CNBC Pro: Ed Yardeni upgrades his U.S. growth forecasts, says a unique factor will cushion the economy

The U.S. economy has shifted from a "rolling recession" to a "rolling recovery," according to market veteran Ed Yardeni.

Speaking to CNBC's "Squawk Box Asia," the president of Yardeni Research said he has upgraded his U.S. GDP forecasts for this year and next as one unique factor was softening the impact of rising interest rates on the U.S. economy.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Copyright CNBC
Contact Us