European stocks struggle as PMIs show contraction

BLOOMBERG

Stocks in Europe struggled for traction on Thursday as activity surveys showed a recession in the euro area is looking increasingly likely.
S&P Global’s purchasing managers’ index was in contraction again in November, hitting 47.1, data showed. While that’s a bigger uptick than anticipated by economists, it marks the sixth consecutive month below the 50 level that indicates expansion. The PMI reading unexpectedly fell in France, while rising more than analysts’ estimates in Germany.
Dutch firms were among the biggest decliners in the Stoxx Europe 600 index after far-right lawmaker Geert Wilders won a shock victory in the country’s elections. Lender ING Groep NV fell as much as 3% in Amsterdam, while ABN Amro Bank NV was down 1.2% and chipmaker ASML Holding NV shed 0.7%.
Swedish stocks jumped and the krona weakened after the country’s central bank in a surprise move decided to leave its main benchmark rate unchanged at 4%. Analysts had expected an increase to 4.25%. The euro and yen edged higher as the dollar surrendered gains. US equity futures were little changed.
There is no Treasury cash trading on Thursday due to the Thanksgiving holiday, while Japanese markets are also closed. Meanwhile, crude oil extended a decline as discord within Opec+ forced the group to delay an upcoming meeting, quelling speculation of further production cuts.
Industrial metals fell as iron ore tumbled from from a nine-month high after Chinese authorities stepped up a campaign to try and cool the rally in the steelmaking ingredient.
In Asia, Country Garden Holdings Co’s shares and bonds surged in Hong Kong following news that Beijing included the builder in a draft list of 50 developers eligible for financial support, the latest move to plug an estimated $446 billion gap in funding needed to ease the housing crisis. Brent crude sank below $81 a barrel after a volatile session that saw prices swing by more than $4, while West Texas Intermediate was near $76.