European Stocks Close Lower; UK Manufacturing PMI Touches 27-Year High in April

Tuesday, May 4, 2021 12:29 PM | MT Newswires

European stocks closed lower on Tuesday, giving back some of the gains made during last month, with corporate reporting in the bloc grabbing market attention and UK investors returning from a long weekend to see stellar manufacturing data from the country.

The French CAC ended down 0.9%, the European STOXX 600 closed down 1.5% and the Swiss Market Index finished down 1.3%. Meanwhile, the German DAX ended down 2.5% and the FTSE 100 closed 0.7% lower.

The final manufacturing PMI grew to 60.9 in April from 58.9 in March, beating the flash estimate of 60.7, IHS Markit data showed, with figures in both output and new orders among the best seen in the past seven years. The reading was the highest since the 61 recorded in July 1994.

Looking into the second quarter, the manufacturing outlook remains positive, with 66% of companies expecting output to be higher this time next year, the highest level of confidence in seven years. The optimism is due to the progressive resumption of a more normal pace of economy, with less disruption related to the pandemic and Brexit.

Meanwhile, the European Medicines Agency started the rolling review of Sinovac's inactivated COVID-19 jab. The decision was backed by preliminary data from laboratory and clinical studies, which showed the vaccine was able to trigger antibody production and may help protect against COVID-19 infection.

On the corporate news front, Infineon Technologies (IFX.F) raised its guidance for revenue and margins in fiscal 2021 thanks to strong second-quarter results buoyed by a growing global market for semiconductors, but warned of supply bottlenecks in some segments. Shares in Infineon ended down 6.1%.

Italian luxury carmaker Ferrari (RACE.MI) reported a profit increase in the first quarter of the year, saying it remains confident of reaching the top end of its full-year forecasts, expecting net revenue of around 4.3 billion euros ($5.17 billion), above the 3.5 billion euros reported in 2020. Shares in Ferrari, however, ended down 8%.

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