Europe midday: Shares lower despite EZ PMI; THG gains on Kelso stake build

The Stoxx 600 index was down 0.1% in midday trade.

Oil prices were under pressure after a raft of disappointing US economic data, prompting recessionary fears in the world’s biggest economy. Brent crude hovered around $77 a barrel.

The Eurozone economy strengthened in April, a closely-watched survey showed on Friday, bolstered by a resurgent service sector.

The latest flash HCOB Composite PMI Output Index, compiled by S&P Global, was 54.4, up on March’s 53.7 and an 11-month high. It was also well above consensus expectations of 53.7.

Within that, the manufacturing output index fell below the neutral 50.0 level, to 48.5 from 50.4 in March, while the manufacturing PMI slid from 47.3 to 45.5, a 35-month low.

However, the services PMI business activity index rose to a 12-month high of 56.6 from 55.0 a month earlier.

UK retail sales fell by more than expected in March, official data showed on Friday, after the wet weather kept shoppers at home.

According to the Office for National Statistics, retail sales volumes fell by 0.9% in March, following a downwardly-revised increase of 1.1% in February. Most analysts had been looking for a 0.5% decline.

On a quieter day of corporate news there was little to move markets. Glencore said it remained on track to exceed earnings forecasts, despite a dip in first-quarter production, thanks to strong trading profits. Shares in the mining giant were down 1.8%, with the negative sentiment spilling over to rivals Rio Tinto and Anglo American.

Copper production fell 5% to 244,100 tonnes in the three months to March end, due to planned lower grades and delays caused by bad weather. Glencore left its 2023 guidance for copper production unchanged, however, at 1.04m tonnes.

Activist investor Kelso Group said on Friday that it has upped its stake in e-commerce retailer THG to 8m shares, as it argued that the company’s nutrition business - MyProtein - is one of the key drivers of the investment. Shares in THG gained 6%.

German software firm SAP slipped despite reporting higher revenue and operating profit, ahead of a consensus forecast from the company. It also revised annual profit guidance downward due to a divestment.

Holcim, the Swiss maker of building materials, also posted a rise in revenue and profit but its shares were down 2%.

Reporting by Frank Prenesti for Sharecast.com