European Markets Climb On Manufacturing Data

(RTTNews) - The European markets ended Wednesday's session with modest gains. The markets received a boost from positive manufacturing data. Eurozone manufacturing sector expanded more than initially estimated as growth accelerated in Germany, Spain, Italy and the Netherlands.

The weak performance of the U.S. markets caused Europe to pare its early gains in the afternoon. The weaker than expected U.S. private sector employment report as well as the ISM manufacturing data weighed on investor sentiment.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.50 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.43 percent.

The DAX of Germany climbed by 0.29 percent and the CAC 40 of France rose by 0.57 percent. The FTSE of the U.K. gained 0.54 percent and the SMI of Switzerland finished higher by 0.09 percent.

In Frankfurt, steel maker ThyssenKrupp climbed by 2.09 percent. Societe Generale raised the stock to "Buy" from "Hold." Peer Salzgitter gained 2.77 percent.

Heidelberg Cement finished down by 0.22 percent, after HSBC raised the stock to "Hold" from "Underweight."

Commerzbank increased by 1.56 percent and Deutsche Bank closed up by 1.00 percent.

In Paris, Credit Agricole advanced by 3.11 percent and Societe Generale added 1.52 percent. BNP Paribas also gained 0.81 percent.

In London, Lloyds Banking Group rose by 1.42 percent. Jefferies upgraded its rating on the stock to "Hold" from "Underperform."

Barclays increased by 2.76 percent and HSBC added 0.80 percent. Royal Bank of Scotland finished up by 1.59 percent.

Kingfisher fell by 3.31 percent, following the strong gains of the previous session.

Randgold Resources climbed by 2.30 percent, due to the gains in gold prices. Fresnillo also closed higher by 2.56 percent.

Basilea Pharmaceutica gained 0.90 percent in Zurich. The company reported a license agreement for novel panRAF kinase inhibitors with a consortium of organizations.

Eurozone manufacturing sector expanded more than initially estimated as growth accelerated in Germany, Spain, Italy and the Netherlands, final data from Markit Economics showed Wednesday. The Purchasing Mangers' Index rose to a 10-month high of 52.2 in March from 51 in February. The flash score was 51.9.

German manufacturing growth in March was faster than estimated earlier, marking the strongest improvement in eleven months, survey data from Markit Economics showed Wednesday. The Markit/BME Germany Manufacturing Purchasing Managers' Index climbed to 52.8 from 51.1 in February. The flash reading for the index was 52.4, released on March 24.

The French manufacturing sector continued to contract in March but at a slower than initially estimated pace, final data from Markit revealed Wednesday. The Purchasing Managers' Index came in at 48.8 in March, up from 47.6 in February. The flash score was 48.2.

British manufacturing sector expanded at the fastest pace in eight months during March as orders and production growth gathered momentum.

The Purchasing Managers' Index rose to 54.4 from 54 in February, which was revised down from 54.1, survey results from Markit Economics and the Chartered Institute of Procurement & Supply showed Wednesday. The latest PMI reading was in line with economists' expectations.

U.K. labor productivity declined in the fourth quarter, while labor costs rose moderately, data from the Office for National Statistics showed Wednesday. Labor productivity as measured by output per hour dropped 0.2 percent in the fourth quarter from prior three months, when it grew 0.5 percent.

China's manufacturing sector slipped into contraction in March, the latest report from HSBC showed on Wednesday, with a PMI score of 49.6. That was higher than the preliminary reading of 49.2, although it was down from 50.7 in February. It also moved below the boom-or-bust line of 50 that separates expansion from contraction.

Private sector job growth in the U.S. continued to slow in the month of March, according to a report released by payroll processor ADP on Wednesday. ADP said private sector employment climbed by 189,000 jobs in March following a slightly upwardly revised increase of 214,000 jobs in February.

Economists had expected an increase of about 230,000 jobs compared to the addition of 212,000 jobs originally reported for the previous month.

Manufacturing activity in the U.S. saw continued growth in the month of March, according to a report released by the Institute for Supply Management on Wednesday, although the pace of growth slowed by more than anticipated.

The ISM said its purchasing managers index dropped to 51.5 in March from 52.9 in February. While a reading above 50 indicates continued growth in manufacturing activity, economists had expected the index to show a more modest drop to 52.5.

After reporting a steep drop in U.S. construction spending in the previous month, the Commerce Department released a report on Wednesday showing that spending saw some further downside in the month of February

The report said construction spending edged down 0.1 percent to an annual rate of $967.2 billion in February after tumbling 1.7 percent to a revised $967.9 billion in January. The modest drop in spending came in line with economist estimates.