The Albany Gazette - Eurozone stocks gain on survey; London firms after election call

Frankfurt and Paris stocks were higher after a key survey showed that eurozone business activity accelerated in May.

The HCOB Flash Eurozone purchasing managers' index (PMI), published by S&P Global, rose to 52.3 from 51.7 in April, its highest in 12 months. Any reading above 50 indicates growth, while a figure below 50 shows contraction.

The rise in the PMI was driven by the services sector, where activity rose by a fourth consecutive month helped by new business. But the manufacturing sector remained below 50, although its decline slowed.

"The PMI release today reaffirms our view that the eurozone economy has finally turned a corner and will almost certainly post another expansion in the second quarter," said economist Rory Fennessy at research consultancy Oxford Economics.

"But the recovery will remain gradual, as monetary policy loosening won't deliver a meaningful boost to growth until next year."

London stocks largely shrugged off Wednesday's news that Conservative British Prime Minister Rishi Sunak called a general election for July 4.

The right-wing Tories, in power since 2010 but battered by disappointment over Brexit, a cost-of-living crisis and a slew of scandals, have consistently trailed the main opposition Labour party in opinion polls for two years.

"While politics has moved to the top of the agenda as the UK general election campaigning machine prepares to get underway, the only shock for investors is the date of the big vote," noted AJ Bell investment director Russ Mould.

"It's sooner than expected but until we get full election manifestos from the Conservatives and Labour, markets have stayed calm."

Sentiment remained subdued one day after hotter-than-expected annual UK inflation dampened hopes of a Bank of England interest rate cut any time soon.

Asian markets diverged Thursday after minutes from the Federal Reserve's most recent policy meeting indicated officials would keep interest rates elevated for some time as they struggle to bring inflation down to their two percent target.

The news -- coming on top of faster-than-predicted UK inflation -- was offset slightly by forecast-busting earnings from US tech titan Nvidia that showed profits and revenue soaring.

The region's equities have taken a breather after a recent rally driven by data indicating inflation was easing and the jobs market was softening -- fanning hopes the US central bank would begin cutting borrowing costs by September.

However, warnings from a number of decision-makers that they wanted to see more evidence that prices were under control have caused some dealers to rethink.

- Key figures around 1100 GMT -

London - FTSE 100: UP 0.1 percent at 8,375.57 points

Paris - CAC 40: UP 0.3 percent at 8,112.80

Frankfurt - DAX: UP 0.3 percent at 18,726.73

EURO STOXX 50: UP 0.5 percent at 5,047.59

Tokyo - Nikkei 225: UP 1.3 percent at 39,103.22 (close)

Hong Kong - Hang Seng Index: DOWN 1.7 percent at 18,868.71 (close)

Shanghai - Composite: DOWN 1.3 percent at 3,116.39 (close)

New York - Dow: DOWN 0.5 percent at 39,671.04 (close)

Dollar/yen: DOWN at 156.74 yen from 156.75 yen on Wednesday

Euro/dollar: UP at $1.0836 from $1.0826

Pound/dollar: UP at $1.2708 from $1.2717

Euro/pound: DOWN at 85.26 from 85.10 pence

West Texas Intermediate: UP 0.8 percent at $78.20 per barrel

Brent North Sea Crude: UP 0.8 percent at $82.57 per barrel

(E.Taylor--TAG)