Europe midday: Stocks dip despite positive PMI figures

European stocks were lower in the early afternoon, despite PMI data being better than expected, as investors kept an eye on oil prices.

At midday, the benchmark Stoxx Europe 600 index was down 0.52%, Germany’s DAX fell 0.77% and France’s CAC 40 was 0.62% lower.

Financial analyst at Spreadex Connor Campbell said: “Over in the Eurozone the DAX and CAC weren’t particularly happy, with both indices falling around half a percent despite a set of solid flash manufacturing and services PMIs from the region. The euro’s mild gains against the pound and the dollar might have helped push the Eurozone indices lower, though it is still surprising just how much they have fallen.”

In London, the FTSE 100 rose 0.28% as investors await the Treasury's Autumn Statement at 1230 GMT. Estate agents were however under the cosh ahead of the statement after it was revealed that it would include a ban on letting agent fees.

Meanwhile, oil prices were on the rise amid growing expectations that OPEC members and non-OPEC Russia would agree a production cut at next week’s meeting. The West Texas Intermediate up 0.17% at $48.11 per barrel and Brent crude up 0.26% at $49.45.

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 higher 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.