Europe stocks higher as investors assess weak PMI data; euro slumps to two-year low

LONDON — European stocks were higher on Friday, as investors reviewed a range of key regional data points.

The pan-European Stoxx 600 index was trading 0.5% higher at around midday London time, with most sectors in positive territory. Utility stocks led the gains, up 2%, while Europe’s banking index slipped 2.1%.

The euro slid against the dollar after PMI data showed that euro zone business activity fell sharply in November. The euro was last seen trading at $1.0415, down 0.55% for the session, off earlier lows when it hit its lowest level since December 2022.

S&P Global’s HCOB flash composite Purchasing Managers’ Index for the euro zone came in at 48.1 in November, down from 50.0 in October and below expectations.

Separate data published Friday showed the German economy eked out 0.1% growth in the third quarter on the previous three months — lower than a preliminary reading of 0.2% for the period.

In the U.K., the pound fell to a six-month low against the U.S. dollar following U.K. retail sales data. The country’s Office for National Statistics said that retail sales volumes lost 0.7% month-on-month in October, well below economists’ expectations of a 0.3% decline.

Gold prices extended gains on Friday and were on course for their best week in a year, amid concerns over the conflict. Spot gold was trading around 1.1% higher at $2,699.5 per ounce at 12:05 p.m. London time.

Asia-Pacific markets mostly rose on Friday, tracking gains on Wall Street that saw the S&P 500 log gains for a fourth straight day.

U.S. stock futures, meanwhile, were lower, but the three major averages were still on track to post weekly gains.