Europe midday: Shares extend gains as EZ PMI boosts sentiment

23rd Apr 2024 11:24

(Sharecast News) - European shares surged ahead on Tuesday, with Britain's FTSE 100 index hitting a record high and upbeat survey data from the eurozone boosting sentiment.

The pan-European Stoxx 600 index was up 0.92% to 506.94. The FTSE 100 reached 8065 points, up 0.52% to clear its previous high of 8,047 set in February 2023.

Business activity in the eurozone grew at the fastest pace for nearly a year in April, according to preliminary data released on Tuesday.

The HCOB flash composite purchasing managers' index rose to 51.4 from 50.3 in March, hitting an 11-month high. This was above the 50.0 mark that separates contraction from expansion and ahead of consensus expectations for a reading of 50.7.

The services PMI increased to 52.9 from 51.5 and the manufacturing output PMI ticked up to 47.3 from 47.1.

UK government borrowing overshot forecasts in March, producing a budget deficit that was £6.6bn higher than expected, official data revealed on Tuesday, damaging plans for a pre-election tax cut by Finance Minister Jeremy Hunt.

Public sector net borrowing, excluding state-controlled banks, came in at £12bn in March, the Office for National Statistics said. This was above expectations of around £10bn.

Borrowing in the financial year ending March 2024 was provisionally estimated at £120.7bn, down £7.6bn than a year ago, but £6.6bn more than forecast by the Office for Budget Responsibility (OBR).

Public sector net debt excluding public sector banks at the end of March 2024 was provisionally estimated at 98.3% of GDP; 2.6 percentage points more than at the end of March 2023, and remains at levels last seen in the early 1960s, the ONS said.

In equity news, retail shares were in focus. Primark owner Associated British Foods surged after lifting annual guidance, while JD Sports Fashion was also higher after announcing it was buying US chain Hibbett for $1.08bn.

Swiss drugmaker Novartis gained as the company raised its full-year guidance after reporting better-than-expected first-quarter results.

Renault fell despite the French vehicle maker reporting a 1.8% uptick in its first-quarter revenue, led by strong performance in its financing business.

Nordet surged as the Swedish financial services company posted interim results.

Reporting by Frank Prenesti for Sharecast.com