BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European markets closed weak on Tuesday as investors reacted to disappointing regional PMI data, and a mixed jobs data from the U.S., in addition to closely following the developments on the geopolitical front.
PMI readings from Germany, France and the U.K. were a bit of concern with the services sector activity showing a slowdown in the month of December.
Data from the U.S. Labor Department showed non-farm payroll employment climbed by 64,000 jobs in November after tumbling by 105,000 jobs in October. Economists had expected employment to rise by 50,000 jobs.
Meanwhile, the Labor Department said the unemployment rate rose to 4.6% in November from 4.4% in September. The unemployment rate was expected to tick up to 4.5%.
Although the data has increased the likelihood the Federal Reserve continuing to cut interest rates in the near future, the report has also raised concerns about the strength of the world's largest economy.
The pan European Stoxx 600 fell 0.47%. The U.K.'s FTSE 100 ended down by 0.68%, Germany's DAX closed lower by 0.68% and France's CAC 40 drifted lower by 0.23%. Switzerland's SMI gained 0.15%.
Among other markets in Europe, Denmark, Finland, Greece, Iceland, Netherlands, Norway, Poland, Portugal, Spain, Sweden and Turkiye closed weak.
Belgium, Czech Republic, Ireland and Russia ended higher.
In the UK market, Babcock International, BP, Informa, Metlen Energy & Metals, Shell and Polar Capital Technology Trust lost 2.4 to 3.6%.
Rolls-Royce Holdings ended on a weak note despite announcing plans to launch a £200 million interim share buyback program starting January 2, 2026.
Centrica shares declined after the company sold Spirit Energy's 15% stake in the Cygnus gas field to Serica Energy for 98 million pounds sterling.
Glencore, Auto Trader Group, Melrose Industries, BAE Systems and Haleon also ended notably lower.
EasyJet climbed 3.2%. Endeavour Mining, JD Sports Fashion, Fresnillo, Convatec Group, St. James's Place, 3i Group, Assoicated British Foods, Legal & General and Marks & Spencer also posted strong gains.
In the German market, Zalando rallied about 4%. Merck, Gea Group and Adidas gained 1 to 2%.
Rheinmetall tumbled 4.7%. Bayer, Fresenius, Commerzbank, SAP, MTU Aero Engines, BMW and Porsche Automobil lost 1 to 3%.
In the French market, Bureau Veritas climbed 2.3%. Saint Gobain, LVMH and Accor gained 1.2 to 2%.
Kering gained about 1.5%. The stock attracted attention after the company sold a majority stake in its Fifth Avenue property to Ardian for $690 million, while retaining 40% ownership.
Renault, Thales, Airbus, EssilorLuxottica, TotalEnergies, STMicroElectronics, Schneider Electric, ArcelorMittal and Publicis Groupe lost 1 to 2%.
The U.K. unemployment rate rose slightly in the three months to October, data from the Office for National Statistics showed.
The jobless rate climbed to 5.1% in the three months to October from 5% in the preceding period.
In the three months to October, average earnings excluding bonuses grew 4.6% from the prior year, which was slightly faster than the forecast of 4.5%.
In November, payroll employees decreased by 171,000 or 0.6 percent from the prior year. Compared to last month, employment grew 38,000 to 30.3 million.
Including bonuses, average earnings advanced 4.7% in the August to October, data showed.
Data from S&P Global showed the UK S&P Global Composite PMI picked up to 52.1 in December from November's 51.2 and surpassing market forecasts of 51.6.
The Services PMI came in at 52.1 compared to 51.3 a month earlier, while the manufacturing PMI score was 51.2 in December, up from 50.2 in November.
Data from S&P Global showed the HCOB Flash Germany Composite PMI fell to 51.5 in December, the lowest in four months, compared to 52.4 in November and below forecasts of 52.4.
Private sector activity slowed due to sluggishness in underlying demand. The Services PMI for December came in at 52.6 compared to 53.1 a month earlier, while the manufacturing PMI was at 47.7, compared to 48.2 a month earlier.
The HCOB Flash Eurozone Composite PMI fell to 51.9 in December, its lowest level in three months, down from 52.8 in November. Private sector PMI came in at 52.6, compared ot 53.6, while manufacturing PMI was 49.2 in the month, as against 59.6 in the previous month.
The ZEW Indicator of Economic Sentiment for the Euro Area climbed by 8.7 points from the prior month to 33.7 in December, the highest reading in five months.
Data from Eurostat showed the Eurozone's trade surplus widened to €18.4 billion in October 2025 from €7.1 billion a year earlier.
According to flash survey results from S&P Global, France's headline HCOB composite output index posted 50.1 in December, down from 50.4 in November. However, a reading above the threshold 50.0 indicates expansion.
The services Purchasing Managers' Index fell to a two-month low of 50.2 from 51.4 in November. At 50.6, the manufacturing PMI hit a 40-month high, up from 47.8 a month ago.
The HCOB Flash Eurozone Composite PMI fell to 51.9 in December, its lowest level in three months, down from 52.8 in November. Private sector PMI came in at 52.6, compared ot 53.6, while manufacturing PMI was 49.2 in the month, as against 59.6 in the previous month.
The ZEW Indicator of Economic Sentiment for the Euro Area climbed by 8.7 points from the prior month to 33.7 in December, the highest reading in five months.
Data from Eurostat showed the Eurozone's trade surplus widened to €18.4 billion in October 2025 from €7.1 billion a year earlier.
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