European Stocks Erase Losses After Strong PMIs

Euro-zone purchasing managers’ indexes out on Thursday indicated the region got off to a strong start in the third quarter of the year, sending the stock markets mostly higher.

The numbers: Private-sector activity in the euro-zone expanded faster than expected in July, according to the flash PMI reading from Markit. The composite PMI for the currency bloc rose to a three-month high of 54, beating forecasts of a 52.9 print.

Germany’s figures also came in better than expected, with the manufacturing PMI rising to a three-month high of 52.9. The composite PMI climbed to 55.9, also a three-month high. In France, the composite reading indicated that the economy weakened at a slower pace than in July, with the services sector returning to growth while manufacturing fell further into contraction.

Market reaction: The Stoxx Europe 600 index XX:SXXP +0.41%  erased early losses after the upbeat German and euro-area readings, and traded 0.2% higher at 343.61. Germany’s DAX 30 index DX:DAX +0.37%  rose 0.1% to 9,763.04, while France’s CAC 40 index FR:PX1 +0.76% was climbed 0.2% to 4,389.94. The U.K.’s FTSE 100 UK:UKX +0.12%   trimmed losses to trade flat.

Source: MarketWatch