European equity markets were fairly mixed in today’s trading session, as investors remain cautious looking for further direction. The CAC index and the London benchmark edged higher, recovering from recent losses, while the DAX and IBEX continued to remain under pressure after falling more than 0.15%.
On the macroeconomic front, US ISM NY manufacturing surged to 68.1 in July compared to 60.5 in June, hitting an 8-month high. However, both the Dow Jones and S&P 500 indices traded range-bound, as risk appetite was limited. The USD index held above 81.3, rebounding for Friday’s losses.
Eurozone’s sentiment index fell sharply to 2.7 in August from a 10.1 in July, drastically missing analysts’ estimates of 9.0. Furthermore, Eurozone’s PPI edged higher by 0.1% in June compared to a fall of 0.1% in May, but y/y the figure was down to -0.8%, adding further pressure to the European markets.
News that Portugal’s central bank took control of Banco Espirito Santo (in a 4.9 billion-euro bailout), failed to provide any support to European equity markets. Portugal’s stock exchange managed to post fresh gains adding more than 50 points in today’s session following the news.
In London, banks and mining stocks posted modest gains, supporting the upside momentum in the market. HSBC led the UK banking sector higher after climbing more than 0.7% in late trading despite its pre-tax profit falling by 12% in the first half of 2014 to reach $12.3 bln, missing expectations.