(CercleFinance.com) – European stock markets start the week with modest gains (+0.3% in London, +0.4% in Frankfurt and Paris), with poor manufacturing PMI indices seeming to take a back seat with a publication strong from the banking giant HSBC.
At 49.8 against 52.1 in June, the final PMI for the manufacturing industry in the eurozone, calculated by S&P Global, slipped below the 50 point threshold last month, thus signaling the first contraction of the sector since a little more than two years.
In its press release, S&P Global also warns that ‘future gas shortages risk further hampering the activity of manufacturers in the euro zone, amplifying the phenomenon of weakening demand and destocking’.
For its part, the UK’s manufacturing PMI fell to a 25-month low of 52.1 in July, thus reflecting a further slowdown in the expansion of the sector, with even a first contraction in its production since May 2020.
Traders still need to take notice this week of, among other things, the S&P Global and ISM composite PMI indices, the Bank of England’s monetary policy decisions and the US jobs report for July.
The results season will also continue, with, for example, Bouygues, BP, BMW, Commerzbank, Société Générale, ING, Bayer, Glencore and Allianz in Europe, or even Dupont, Caterpillar, Starbucks and Eli Lilly on the other side of Atlantic.
So far, HSBC is up nearly 6% in London as Europe’s largest bank by assets has raised its ambitions for 2022 and 2023 following a better-than-expected performance in the second quarter.
Heineken, on the other hand, yields 2% to Amsterdam, while the brewer saw its EPS increase by half in its first half, but left its objectives unchanged for 2022 while revising those for 2023 in a favorable direction.
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