European Markets Flattened As Stimulus Hopes Fade

(RTTNews) - The majority of the European markets ended Friday's session with modest gains. The markets turned in a rather lackluster performance at the end of the trading week, fluctuating between small gains and losses throughout the session. Investors were in a foul mood after a closely-watched survey of business managers showed U.K. private sector activity contracted at the steepest pace since early 2009 in July in the wake of the Brexit vote.

Hopes for further stimulus measures from the BOJ and ECB also faded Friday. The European Central Bank maintained its rates on Thursday and the Bank of Japan reportedly may hold off on implementing additional easing measures at its meeting next week.

The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.13 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.10 percent.

The DAX of Germany dropped 0.09 percent, but the CAC 40 of France rose 0.11 percent. The FTSE 100 of the U.K. gained 0.46 percent and the SMI of Switzerland finished higher by 0.15 percent.

In Frankfurt, Commerzbank dropped 1.59 percent and Deutsche Bank forfeited 0.76 percent.

In Paris, Nicox plunged 8.57 percent after the ophthalmic company announced that its partner Bausch + Lomb had received a Complete Response Letter from the U.S. Food and Drug Administration, concerning latanoprostene bunod.

In London, Vodafone jumped 4.64 percent. The mobile operator confirmed its full-year outlook after reporting a better-than-expected 2.2 percent rise in first-quarter organic service revenue.

Building materials group CRH advanced 2.60 percent after raising its first-half earnings guidance.

Marks & Spencer weakened by 3.56 percent after Barclays downgraded its rating on the stock to "Underweight" from "Equal weight."

easyJet surrendered 3.75 percent after Investec downgraded it to "Hold" from "Buy."

Construction company Skanska dropped 4.84 percent in Stockholm after its second-quarter earnings missed analysts' expectations.

Eurozone private sector expanded at the weakest pace in 18 months in July, but remained resilient in the face of the surprise "Brexit" vote and the terror attack in France. The flash composite output index fell to 52.9 in July, an 18-month low, from 53.1 in June, preliminary results of a survey by Markit showed Friday. Economists had forecast a weaker score of 52.5.

Germany's private sector expanded at the fastest pace in seven months in July, flash survey results from Markit showed Friday. The flash composite output index rose to 55.3 from 54.4 in June. The index reached its highest level in 2016 so far with both manufacturers and service providers reporting stronger expansions.

The French private sector stagnated in July as the growth in services was offset by a contraction in manufacturing, survey data showed Friday. The composite output index rose to neutral 50.0 in July from 49.6 in June, flash report from Markit revealed today.

The U.K. private sector activity contracted at the steepest pace since early 2009, after Britons voted to leave the European Union in a surprise move, a closely watched survey showed Friday. The flash composite output index fell to an 87-month low of 47.7 in July from 52.4 in June, according to flash survey results from Markit and the Chartered Institute of Procurement & Supply.