European Stocks Open Higher but Lose Momentum After PMI Data

Manufacturing PMIs in the Eurozone and Germany exceeded expectations, but weaker-than-anticipated service sector data weighed on sentiment.

European stock markets started the week on a positive note but lost steam on Monday (24) following disappointing Purchasing Managers' Index (PMI) data from the Eurozone and the UK.

Initially, equities surged, but optimism faded as fresh PMI figures painted a mixed picture of regional economic activity. While manufacturing PMIs in the Eurozone and Germany came in stronger than expected, the services sector unexpectedly contracted. In the UK, the situation was reversed—service sector growth remained solid, but manufacturing activity disappointed, dampening investor enthusiasm.

Adding to market caution, investors are keeping a close watch on U.S. President Donald Trump's upcoming tariff policies. According to The Wall Street Journal, Trump may narrow the scope of his tariffs, targeting countries with significant trade surpluses with the U.S. On Friday, the president hinted at potential "flexibility" in the measures, set to take effect on April 2.

Market Snapshot

As of 7:15 a.m. (Brasília time):

• London’s FTSE 100 edged up 0.04%

• Paris’ CAC 40 slipped 0.10%

• Frankfurt’s DAX gained 0.24%

• Milan’s FTSE MIB rose 0.16%

• Madrid’s IBEX 35 climbed 0.46%

• Lisbon’s PSI 20 advanced 0.13%

  
  

In corporate news, shares of International Airlines Group (IAG), the parent company of British Airways, recovered 0.50% after sliding 2.3% in the previous session, following the temporary closure of London’s Heathrow Airport.