Europe close: Stocks end flat amid raft of data and corporate news

European stocks were relatively flat at close on Friday as investors digested eurozone PMI data and sifted through corporate releases.

The benchmark Stoxx Europe 600 index was last down 0.12%, France’s CAC 40 was 0.11% higher and Germany’s DAX slipped 0.09%.

At the same time, oil prices were losing ground, reversing earlier gains. West Texas Intermediate was down 1.89% to $43.92 a barrel while Brent crude was 1.83% firmer at $45.37.

Investors were still mulling over the European Central Bank's decision on Thursday to leave the benchmark refinancing rate at 0%, with market participants now expecting further monetary policy stimulus down the line.

“What goes up, must eventually come down, so no surprise that US stocks dipped overnight following an incredible run of seven consecutive record highs,” said Lee Wild, heady of equity strategy at Interactive Investor.

“ECB president Mario Draghi wasn't playing ball yesterday,” he said, adding that the focus now shifts to rate decisions from the Federal Reserve and Japanese central bank next week.

In corporate news, telecoms firm Vodafone was higher after its first-quarter revenue beat analysts’ expectations, while building materials group CRH rallied after lifting its earnings estimate as a result of exceptional trading in the second quarter.

Home Retail Group gained ground after the Competition and Markets Authority cleared Sainsbury’s acquisition of the Argos owner.

On the downside, Spain’s Banco de Sabadell slumped after its second-quarter net profit dropped more than expected due to higher loan-loss provisions

Swedish construction company Skanska was sharply lower after its second-quarter earnings fell short of analysts’ expectations.

Sports Direct was also under the cosh after a report by the Business, Innovation and Skills committee compared working conditions at the company to a Victorian workhouse and said founder Mike Ashley must be held accountable.

Marks & Spencer was in the red after Barclays downgraded the stock to ‘underweight’ from ‘equalweight’.

On the data front, Markit’s flash eurozone composite purchasing managers’ index, which combines both the services and manufacturing sector, fell less than expected in July.

The PMI slipped to 52.9 from 53.1 in June, hitting an 18-month low but better than expectations for a reading of 52.5.

The services PMI came in at 52.7, down from 52.8 in June, also marking an 18-month low but ahead of expectations of 52.5.

Meanwhile, the manufacturing PMI nudged down to 51.9 in July from 52.8 the previous month. This marked a two-month low and was a touch below the expected reading of 52.0.

Chris Williamson, chief economist at Markit, said: “The eurozone economy showed surprising resilience in the face of the UK’s vote to leave the EU and another terrorist attack in France. The overall rate of economic growth is largely unchanged, suggesting GDP is growing at a sluggish but reasonably steady annual rate of around 1.5%.

It was a much bleaker picture for the UK, where Markit’s flash composite purchasing managers’ index fell to 47.7 in July from 52.4 in June, marking its lowest reading since April 2009 in the aftermath of the Brexit vote.

The flash services PMI slid to 47.4 from 52.3 in June, missing expectations of 49.2 and marking the lowest reading since March 2009.

Meanwhile, the manufacturing PMI came in at 49.1 from 52.1 the month before, falling short of economists’ expectations for a reading of 50. This was the lowest level since February 2013.