European Stock Markets Mixed, Eurozone GDP Suddenly Contracts
European stock markets closed mixed on Friday (June 5), with the Stoxx Europe 600 down 0.2% and Germany's DAX down 0.6%. The UK's FTSE 100 rose 0.2%, while France's CAC fell 0.3% and the Swiss Market Index strengthened 0.3%, reflecting a selective market amid weak economic data and a flurry of corporate news.
On the macro front, Eurostat estimates the eurozone economy contracted 0.2% quarter-on-quarter in the first quarter, while the EU economy contracted 0.1% quarter-on-quarter. This is a reversal from the 0.2% growth in the fourth quarter of 2025, reinforcing signs that Europe's growth momentum is waning. Denmark recorded the highest growth (+1.9%), while Ireland recorded the deepest contraction (-12.1%).
In the UK, the Competition and Markets Authority (CMA) opened an investigation into Microsoft to assess whether the company should be designated as having Strategic Market Status in the business software ecosystem under the digital market regime. Regulators will assess Microsoft's market position and conduct customer research to understand purchasing patterns, alternatives, and ease of switching vendors—factors that can impact competition and pricing in the software segment.
In corporate news, HSBC has been embroiled in legal trouble after its Swiss private banking unit was implicated in allegedly helping the former governor of Lebanon's central bank, Riad Salameh, embezzle US$330 million. Media reports said the bank was charged with money laundering and conspiracy, while HSBC said it would not comment but would cooperate with the investigation. HSBC shares fell 0.2% in London.
Meanwhile, BP rose 0.2% after agreeing to invest £10 million in convertible loan notes and acquire exclusive oil marketing rights in a new agreement, with a four-year term and SONIA interest rate compounded daily plus 3% per annum. Elsewhere in the energy sector, Eni announced it had signed an offshore exploration and production license with the Gambian government, marking the company's entry into the country. (Arl)
Source: Newsmaker.id
