European Shares Little Changed After PMI Data

European stocks were little changed on Tuesday as investors assessed the outlook for economic and earnings growth.

The eurozone economy expanded in January for the first time in seven months, the results of a purchasing managers survey showed today, helping ease fears of an impending recession.

The S&P Global Flash Eurozone PMI Composite Output Index, which gauges activity in the manufacturing and services sectors, increased to 50.2 from 49.3 in December, the highest level since June.

Separate data showed U.K. budget deficit widened to the highest December level on record largely due to a sharp growth in spending on energy support schemes and huge interest payments driven by high inflation.

Public sector borrowing increased by GBP 16.7 billion from the last year to GBP 27.4 billion in December, according to data published by the Office for National Statistics.

The pan European STOXX 600 was marginally higher at 454.83 after rising half a percent on Monday.

The German DAX edged up 0.1 percent and France’s CAC 40 rose half a percent while the U.K.’s FTSE 100 was down 0.4 percent.

Drug makers led losses in London, with AstraZeneca down 2.3 percent.

Primark-owner Associated British Foods fell about 1 percent despite reporting a 20 percent jump in revenue in the 16 weeks to 7 January 2023.

Brewing and pub giant Marston soared 6 percent after reporting positive sales for the festive period.

Components and systems manufacturer Senior Plc surged 10 percent after saying it expects annual profit to top consensus.

Engineering & technology firm Technip Energies N.V. fell over 1 percent despite bagging a contract from Saudi Aramco to upgrade sulfur recovery facilities at Aramco’s Riyadh oil refinery.

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