BRUSSELS/FRANKFURT/PARIS, Europe: European markets closed weak on Tuesday, weighed down by concerns over tech stocks valuations amid scepticism about spending on AI infrastructure, fears of possible interest rate hikes by the Federal Reserve, and weak regional PMI data, reported dpa-AFX.
Despite reports of “encouraging progress” in peace efforts, conflicting accounts regarding the reopening of the Strait of Hormuz kept investors cautious.
The pan-European Stoxx 600 fell 0.9 per cent. The United Kingdom (UK)’s FTSE 100 shed 0.52 per cent, Germany’s DAX closed 1.05 per cent down, and France’s CAC 40 lost 0.7 per cent, while Switzerland’s SMI bucked the trend and ended 0.45 per cent up.
Among other markets in Europe, Austria, Finland, Greece, Iceland, Ireland, the Netherlands, Poland, Portugal, Russia, Spain, Sweden and Turkey closed sharp to moderately lower.
Norway edged down marginally, while Belgium, the Czech Republic and Denmark ended higher.
In economic news, the S&P Global Flash Germany Composite PMI fell to 48 in June 2026 from 48.8 in May, missing market expectations of 49.9.
The reading signalled a third consecutive month of contraction in private-sector activity and the steepest decline since December 2024.
Germany’s Services PMI fell to a 43-month low of 46.8 from 48.1. The manufacturing output expanded at a slightly faster pace with the PMI score coming in at 50.8, up from 50.4 a month earlier.
Survey results from the statistical office INSEE showed confidence among French manufacturers decreased in June and returned to its long-term average.
The manufacturing confidence index dropped to 100 in June from 100.2 in May. The score was forecast to fall to 101.
Data from S&P Global showed France’s flash Composite PMI rose to 47.6 in June from 44.9 in May, surpassing market expectations of 46, driven by a return to growth in manufacturing activity and a softer contraction in the services sector.
The manufacturing PMI for June came in at 50.7, up from 49.7 in May, while the Services PMI moved up 47.4 from 44.3 per cent.
According to a flash estimate, the S&P Global UK Composite PMI eased to 49.4 in June from 49.7 in May, a second month of contraction following 11 months of expansion in the British private sector activity. The PMI was expected to come in at 50.6.
The Services PMI dropped to 48.7 in June from 49.3 a month earlier, while the Manufacturing PMI score came in at 53.6 for June, up from 52.2 in May.
The euro area private sector contracted at a slower pace in June as services activity posted a slower fall while manufacturing output continued to grow moderately, flash survey results from S&P Global showed.
The flash composite output index registered 49.5 in June, up from 48.5 in the previous month. The score was above economists’ forecast of 49.1. – BERNAMA-dpa-AFX
