European Markets Finish Mixed In Directionless Trade

(RTTNews) - The European markets ended the first trading session of the new year with mixed results. The markets were stuck in a sideways trading pattern throughout the day and finished little changed overall.

Shares of exporters were under pressure as the Euro and the British pound gained ground against the dollar. Automakers in particular were hard hit.

Mining stocks also struggled despite the release of the better than expected Chinese manufacturing report. The stocks had rallied going into the year end, so investors may have taken the opportunity to lock in some profits.

The pan-European Stoxx Europe 600 index weakened by 0.32 percent. The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.40 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.46 percent.

The DAX of Germany dropped 0.36 percent and the CAC 40 of France fell 0.45 percent. The FTSE 100 of the U.K. declined 0.52 percent and the SMI of Switzerland remained closed for a holiday.

In Frankfurt, automakers were broadly lower as the euro got off to a strong start in 2018 on fears of ECB stimulus tapering. BMW lost 0.76 percent, Daimler dropped 0.34 percent and Volkswagen tumbled 0.36 percent.

In Paris, Renault decreased 0.13 percent and Peugeot fell 0.24 percent.

In London, British Airways owner IAG advanced 2.73 percent after announcing it would buy the insolvent Austrian holiday airline Niki for 20 million euros.

Specialty chemical firm Synthomer lost 1.10 percent after it sold its Leuna site in Germany to Alberdingk Boley Gmbh for an undisclosed amount.

Ahold Delhaize rose 0.08 percent in Amsterdam. The company has commenced the 2 billion euros share buyback program announced on November 8, 2017 and expects to complete the program before the end of 2018.

Eurozone manufacturing sector activity grew the most since the survey began in mid-1997, final data from IHS Markit showed Tuesday.

The factory Purchasing Managers' Index improved to 60.6 in December, in line with flash estimate, from 60.1 in November. This was the highest score since mid-1997 and identical to the flash estimate published on December 14.

The UK manufacturing activity grew strongly at the end of 2017, though the pace of expansion moderated slightly, data published by IHS Markit showed Tuesday.

The IHS Markit/Chartered Institute of Procurement & Supply factory Purchasing Managers' Index fell to 56.3 in December from November's 51-month high of 58.2. The score was below economists' forecast of 57.7.

China's manufacturing activity growth accelerated at the end of 2017, driven by robust output and new orders, survey data published by IHS Markit showed Tuesday.

The Caixin Purchasing Managers' Index rose to 51.5 in December from 50.8 in November. A reading above 50 suggests expansion in the sector. This was the fastest growth in four months and above the expectations of 50.7.