Europe midday: Shares hold gains despite weak eurozone, China PMIs
European stocks were higher at midday on Monday, as investors digested weak manufacturing data for the eurozone and China.
The pan-European Stoxx 600 index was up 0.19% in as investors prepared for another busy week of corporate news.
In China, the latest National Bureau of Statistics manufacturing purchasing managers’ index unexpectedly fell to 49.0 in July, from 50.2 in the previous month and missing market forecasts of 50.4.
"The country was already facing an uphill challenge, to put it mildly, with regards to its growth target this year and the fact that manufacturing activity is slowing again doesn't bode well," said OANDA analyst Craig Erlam.
"While the non-manufacturing survey is much healthier, it also experienced a deceleration last month which further suggests the economy is struggling to get back to full strength."
"One positive from the surveys was the improvement in supply chain conditions which should aid the inflation fight around the world. Of course, it is more than just a supply chain problem at this point but every little helps as central banks are forced to hike rates aggressively for fear of inflation becoming entrenched."
Meanwhile in the eurozone, manufacturing activity contracted last month with factories holding larger inventories of goods due to weak demand, according to a survey.
S&P Global's final manufacturing Purchasing Managers' Index fell to 49.8 in July from June's 52.1, just ahead of a preliminary reading of 49.6 but its first time below the 50 mark separating growth from contraction since June 2020.
In equity news, shares in UK wealth management firm Quilter surged on reports at least four bidders were circling the company.
UK bank NatWest and private equity firms CVC, Bain Capital and BC Partners.
Pearson shares jumped more than 6.5% as the education and publishing company posted strong quarterly results, while HSBC climbed 5.8% after raising profitability targets and pledging to resume dividends next year.
Swedish real estate company SBB fell after Goldman Sachs downgraded the stock to 'sell' from 'neutral'.