June manufacturing PMIs reveal uneven recovery across UK, Germany, and France, weighing on regional market sentiment.
European equities traded mixed as manufacturing PMI data highlighted divergent economic activity in June. The UK’s S&P Global Manufacturing PMI fell to 52.5 from May’s four-year high, signaling a slowdown in growth. Germany’s index showed modest improvement, supporting a 0.31% gain in the DAX, while France’s PMI rise failed to lift the CAC, which slipped 0.34%.
The UK’s reading marked a retreat from the previous month’s peak, though it remained above the 50 threshold separating expansion from contraction. Germany’s manufacturing sector continued its gradual recovery, while France’s uptick suggested resilience amid broader regional challenges. Rising bond yields added pressure, reflecting investor caution over inflation and monetary policy.
Markets reacted unevenly, with defensive sectors outperforming in some indices while cyclicals lagged. The mixed data underscored persistent fragmentation in Europe’s economic rebound.