Europe close: Stocks mixed despite solid manufacturing, services PMIs

European stocks were lower by the day despite strong readings for the single currency bloc´s manufacturing and services sectors, as investors keept a close eye on oil prices and another on the heightened volatility in government bond prices.

The benchmark Stoxx Europe 600 index slipped 0.07%, Germany’s DAX retreated 0.48% and France’s CAC 40 was down by 0.42%.

Milan´s FTSE Mibtel edged up 0.07% even as markets prepare for a possible 'No' vote in the country´s 4 December constitutional vote.

German Bunds dropped after a report from Reuters that the European Central Bank was considering lending the German bonds it owns in order to avoid a market freeze, with a stronger than expected headline reading on US durable goods orders adding to the selling pressure.

Meanwhile, oil prices dipped despite expectations that OPEC members and non-OPEC Russia would agree a production cut at next week’s meeting. West Texas Intermediate gave back 0.06% to end the day at $48.00 per barrel and Brent crude was 0.18% lower to 49.l0.

On the data front, Markit’s 'flash' Eurozone manufacturing and services purchasing managers’ indices for November both beat estimates.

The 'flash' manufacturing PMI came in at 53.7 versus expectations of 53.3, while the services PMI printed at 54.1, beating estimates of 52.9. This was up from 53.5 in October and 52.8, respectively.

Chris Williamson, chief business economist at IHS Markit, said: “The preliminary PMI results for November indicate the sharpest monthly increase in business activity so far this year, with plenty of signs that growth will continue to accelerate.

“The PMI readings so far for the fourth quarter point to GDP expanding 0.4%, led by a rebound in German growth to 0.5%. France is also seen to be enjoying its best spell since the start of the year, with the PMIs signalling GDP growth of 0.2-0.3% in the fourth quarter.”

In corporate news, Italian insurer Generali was on the back foot after announcing plans to exit less profitable markets and sticking to its 2018 targets.

Nordic telecommunications company Telenor fell as Norway’s competition authority has proposed imposing a NOK906m ($106.2m) fine for suspected breaches of competition regulations. The authority has accused Telenor of restricting competition in Norway through price terms and double roaming prohibition in wholesale agreements from 2010 to 2014.

Safran was also in the red as the French state began selling its shares in the company.

United Utilities rose as it reported a small jump in underlying first-half profit and lifted its interim dividend.

Property investor Hammerson edged lower after agreeing to buy four outlet centres in Europe worth a combined €587m (£502m), in order to expand in the territory.

GlaxoSmithKline gained as it said its mepolizumab medicine met Phase 3 trial endpoints.

Thomas Cook surged. Although the travel company posted a drop in revenue and profit for the year to the end of September, the figures came in ahead of expectations.