Europe midday: Stocks slump despite slump in euro area services PMI
Stocks across the Continent are skidding little changed at the end of the week, despite data showing a sharp slowdown in services sector growth inside the single currency block.
Helping to offset the hit to sentiment and boost financial markets was a turnaround overnight in Wall Street's main stock market gauges.
"Whatever the setback US markets appear to have an almost Teflon like ability to shrug off any negative headlines as the Nasdaq once again set a new record high, shrugging off the concerns expressed in Wednesday’s Fed minutes by various central bank officials, about the strength of the US economy," said Michael Hewson, chief market analyst at CMC Markets UK.
Against that backdrop, as of 1245 BST the pan-European Stoxx 600 was flat at 365.63, alongside a 0.1% dip for the German Dax to 12,816.99.
The FTSE MIbtel was lower alongside, down 0.54% at 19,660.03.
Growth rates in euro area manufacturing and services unexpectedly parted ways last month as the reimposition of travel restrictions weighed on the latter, the results of two key surveys revealed.
IHS Markit's Eurzone factory sector Purchasing Managers Index was little changed in August, dipping from July's level of 51.8 to 51.7.
But the services sector PMI dropped from 54.7 to 50.1 alongside.
"The eurozone stands at a crossroads, with growth either set to pick back up in coming months or continue to falter following the initial post-lockdown rebound," said IHS Markit's Economics Director, Andrew Harker.
"The path taken will likely depend in large part on how successfully COVID-19 can be suppressed and whether companies and their customers alike can gain the confidence necessary to support growth."