European stocks closed lower on Tuesday, reclaiming some of last month’s gains, with corporate reporting in the block grabbing market attention and UK investors returning after a long weekend to see brilliant production data from the country.
The French CAC was down 0.9%, the European STOXX 600 down 1.5% and the Swiss market index down 1.3%. Meanwhile, the German DAX fell 2.5% and the FTSE 100 fell 0.7%.
The final manufacturing PMI rose to 60.9 in April from 58.9 in March, surpassing the preliminary estimate of 60.7, IHS Markit data showed, with both output and new orders being among the best in the past seven. years. The rate was the highest since 61 in July 1994.
In the second quarter, production outlook remains positive, with 66% of companies expecting production to be higher at this time next year, the highest confidence level in seven years. The optimism stems from a gradual resumption of a more normal economic pace with less disruptions related to the pandemic and Brexit.
Meanwhile, the European Medicines Agency has begun an ongoing review of the inactivated Sinovac vaccine for COVID-19. This decision was backed up by preliminary laboratory and clinical research data, which showed that the vaccine can induce the production of antibodies and may help protect against COVID-19 infection.
In corporate news, Infineon Technologies (IFX.F) raised its fiscal 2021 revenue and profitability guidance on strong second quarter results supported by the growing global semiconductor market, but warned of supply constraints in some segments. Infineon shares fell 6.1%.
Italian luxury car maker Ferrari (RACE.MI) reported an increase in profit in the first quarter of the year, saying it remains confident to hit the upper end of its annual forecasts, expecting net revenues of around € 4.3 billion (5, $ 17 billion). above 3.5 billion euros declared in 2020. However, Ferrari shares fell 8%.