European Stocks Drift Lower, Dollar Fades Ahead of U.S. Health Care Vote

Frankfurt (Mar 24)  European stocks drifted lower Friday as investors focused on a delayed vote on health care reform in the United States and shrugged-off better-than-expected economic activity data in the single currency area.

Europe's broadest measure of share prices, the Stoxx Europe 600 index, was marked 0.26% lower by 09:30 GMT with all the major national benchmarks drifting into negative territory. Britain's FTSE 100, however, was hoovering in and out of the red as a weaker pound boosted the value of some of its biggest constituents, most of which earn the bulk of their revenues outside of the United Kingdom.

The euro was traded firmly higher at 108.00 against the U.S. dollar after a closely-watched bellwether of economic activity around the region underscored an ongoing recovery and improving price dynamics.

The IHS Markit Composite PMI reading of private sector activity in the Eurozone surged to 56.7 in March, the fastest pace in just under six years and higher than the February reading of 56.0. Its benchmark of the services sector tally also surprised, rising a full point to 56.5 and a 71-month high. The manufacturing sector reading, however, slipped to a two-month low of 57.2.

Collectively, the figures suggest a first quarter GDP growth rate of around 0.6%, IHS Markit said.

Asia markets traded in a similar pattern with the region-wide MSCI Asia ex-Japan little-changed from Thursday's close following a quiet session that largely focused on currency markets. Japan's Nikkei 225, however, rounded out the week on a high not, with investors shrugging off a firmer yen and lifting the benchmark 0.93% higher to 19.262.53 by the close of trading in Tokyo.

Source: TheStreet