European stocks close mixed as key Jackson Hole gathering kicks off
European stocks traded in a mixed fashion on Thursday, as the start of the influential Jackson Hole symposium takes place, as well as the release of regional activity data.
The DAX index in Germany gained 0.1% and the FTSE 100 in the U.K. rose 0.2%, while the CAC 40 in France slipped 0.4%.
Caution ahead of Jackson Hole
The U.S. Federal Reserve’s highly anticipated Jackson Hole symposium kicks off later Thursday, with central bankers from around the world gathering in Wyoming to discuss monetary policy.
The highlight is likely to be Jerome Powell’s speech on Friday - his last one at the annual gathering as Fed chairman - with investors searching for hints for a September cut after expectations soared in the wake of a surprisingly soft payrolls at the start of the month.
However, Powell isn’t the only central banker set to speak at the conference, with the likes of European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey scheduled to appear on various panels.
Market-implied odds of a quarter-point cut by the Fed on September 17 currently stand at 80%, down from 84% a day ago but still broadly expected.
Flash European PMIs in focus
Also on the slate today was the flash purchasing managers’ index data for August for the eurozone, as well as the majority of individual countries, including the likes of Germany and Britain.
The French numbers emerged earlier, and showed that the country’s business activity almost grew for the first time in a year in August, indicating signs of stabilisation in the euro zone’s second-biggest economy after a sustained period of contraction.
The HCOB France flash purchasing managers index (PMI) for the country’s dominant services sector, compiled by S&P Global, came in at 49.7 points in August, at its highest since August 2024 and close to the 50 point threshold separating growth from contraction.
The flash manufacturing PMI for this month increased to 49.9 points - a 31-month high - from 48.2 in July, while the flash August composite PMI - which comprises both the services and manufacturing sectors - reached 49.8 points from 48.6 in July.
The HCOB Flash Eurozone Composite Purchasing Managers’ Index, compiled by S&P Global, rose to 51.1 in August from 50.9 in July, marking the third consecutive monthly improvement and the highest reading since May 2024.
The U.K. Composite Purchasing Managers’ Index rose to 53.0 in August from 51.5 in July, higher than the expected 51.6.
Source: Investing.com
