European markets close higher as tech stocks jump nearly 5%; euro zone PMI data shows improved economic activity

European stocks were back in positive territory Wednesday, with the regional .

— Jenni Reid

The three major indexes were up as Wednesday’s trading session began.

The Dow was up more than 100 points, or about 0.3%, shortly after 9:30 a.m. ET. The S&P 500 added 0.6%. The Nasdaq Composite climbed 0.8%, helped by a rally in Netflix.

— Alex Harring

The U.K.’s services and manufacturing PMI data beat expectations Thursday, with the January headline number rising to the highest level in seven months.

Services PMI came in at 53.8, higher than the 53.2 expected, while manufacturing PMI came in at 47.3, above the 46.7 forecast.

The data should reassure policymakers that inflation is easing ahead of the Bank of England’s interest rate meeting next week, though it may not hasten its path to rate cuts.

— Karen Gilchrist

Shares of British asset manager Abrdn fell 2.5% after announcing plans reduce its headcount as part of wider cost-cutting measures on the back of worse than expected outflows.

The Edinburgh-based company said in a pre-close trading update that it had net outflows of £12.4 billion ($15.75 billion) in the second half of 2023, more than double the £5.2 billion reported in the first half of the year.

It also confirmed media reports on Tuesday, including from Reuters, that it would shed 500 roles, or about 10% of its total workforce, as part of a £150 million cost reduction plan.

— Karen Gilchrist

Euro zone economic activity improved at the start of the year, falling at its slowest rate in half a year, the latest purchasing managers’ survey showed Wednesday.

The HCOB Flash Eurozone Composite PMI Output Index, which gauges activity in the manufacturing and services sectors, rose to 47.9 in January from 47.6 in December, according to the data. It marks a slight shortfall on the 48.0 expected by economists.

HCOB chief economist Cyrus de la Rubia said the data points to “a widespread easing of the downward trajectory” seen over 2023.

The euro zone’s largest economies, France and Germany, both posted a decline in their index, while the wider bloc returned to growth following five months of decline.

— Karen Gilchrist

Shares of German tech company Siemens Energy jumped 11% in early deals after the release of forecast-beating first-quarter results.

German software company SAP also rose 7.7% after the company released its latest financial results and announced plans to restructure 8,000 jobs in a push toward artificial intelligence growth.

On the other end, Ericsson shares fell 4.6% after the telecom company said it forecasts declining demand for 5G gear despite beating fourth-quarter operating profit expectations.

— Karen Gilchrist

A Switzerland-listed car parts manufacturer’s share price could increase by over 70% in the next year, according to Vontobel.

The company makes lightweight auto components for car makers such as BMW, Ford, Renault, Mercedes, GM and Volvo.

Vontobel is forecasting a rise in profit margins and free cash flow at the company.

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— Ganesh Rao

Electric vehicle automakers like Tesla and BYD have been making headlines over the last few weeks – but Goldman Sachs is now keeping watch on a corner of the market.

That is the battery sector – which includes lithium, nickel and electrolyte batteries that are key inputs in the manufacture of EVs.

The investment bank noted that the sector – and stocks – look attractive amid higher adoption of EVs and a reduction in battery prices.

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— Amala Balakrishner

European markets are set to open higher Wednesday.

The U.K.’s FTSE 100 index is expected to open 15 points higher at 7,508, Germany’s DAX up 92 points at 16,724, France’s CAC up 36 points at 7,421 and Italy’s FTSE MIB up 188 points at 30,395, according to data from IG. 

Earnings come from Swedbank, Easyjet, SAP, Alstom and a trading update comes from J D Wetherspoon.

— Holly Ellyatt