In the latest trading session on Tuesday, European stock markets displayed a mixed performance. The Stoxx Europe 600 index saw a modest increase of 0.21%, while the Swiss Market Index experienced a slight decline of 0.28%. France’s CAC 40 index fell by 0.27%, contrasting with a 0.23% rise in the FTSE 100 in London.
Meanwhile, Germany’s DAX ended the day down by 0.10%. Eurostat’s initial estimates reveal that the seasonally adjusted retail sales volume in the euro area decreased by 0.3% in June, while the decline in the European Union was slightly smaller at 0.1% from the previous month of May. When compared year-on-year, June’s retail sales index showed a 0.3% decrease in the euro area, while the EU experienced a marginal increase of 0.1%.
The construction sector also exhibited mixed signals with the seasonally adjusted HCOB Eurozone Construction PMI Total Activity Index falling to 41.4 in July from 41.8 in June. This decline marks a notable downward trend as the sector enters the second half of the year, reflecting continued challenges in the industry.
On a brighter note for the UK, the S&P Global UK Construction Purchasing Managers' Index rose significantly to 55.3 in July, up from 52.2 in June. This uptick indicates a sustained growth trend, marking five consecutive months of expansion, and represents the index's most rapid growth since May 2022.
In contrast, Germany's manufacturing sector reported a positive development as price-adjusted incoming orders jumped by 3.9% in June compared to May, with data sourced from the German Federal Statistical Office. Switzerland's retail sector faced challenges, facing a year-over-year turnover drop of 3.4% in nominal terms for June, as reported by the Swiss Federal Statistical Office.
From a corporate perspective, ArcelorMittal announced on Tuesday that it has completed the acquisition of roughly 65.2 million shares, constituting a 28.4% stake, in French manufacturer Vallourec. This transaction was carried out with funds managed by Apollo Global Management for a total of €955 million (approximately $1.04 billion).
Following the news, shares of the Luxembourg-based steel manufacturer rose 2.5% in Paris. Additionally, important developments are occurring with International Business Machines (IBM) and software company HashiCorp. On Thursday, both companies received notification from the UK's Competition and Markets Authority indicating that the regulator plans to review their proposed merger.
HashiCorp confirmed this news in a regulatory filing on Tuesday. These latest movements in retail, construction, and corporate acquisitions reflect the dynamic landscape within European markets as they navigate a complex economic environment..