European Markets Dropped On Automotive Weakness

(RTTNews) - The European markets ended Friday's session in negative territory. The market enjoyed a 3-session winning streak earlier this week, which stalled out yesterday following the announcement from the European Central Bank. The ECB maintained its rates as expected on Thursday and offered no indications whether further easing measures were in the pipeline.

Weakness among the auto-makers dragged the European markets lower Friday. Investor concerns that the emission scandal could spread to more car makers. A closely-watched survey painted a sluggish picture of Eurozone business activity in April further weighed on investor sentiment.

There was no help to be found in the afternoon, with markets in the United States also under pressure. The tech-heavy Nasdaq in particular was hit hard by weak quarterly results from companies like Microsoft and Google parent, Alphabet.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.34 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.58 percent.

The DAX of Germany dropped 0.60 percent and the CAC 40 of France fell 0.29 percent. The FTSE 100 of the U.K. declined 1.11 percent and the SMI of Switzerland finished lower by 0.62 percent.

Europe's commercial vehicle sales grew for the fifteenth consecutive month in March, the European Automobile Manufacturers Association said Friday. Commercial vehicle registrations surged 8.0 percent from last year to 242,049 units in March. Growth was sustained across all segments of commercial vehicles.

In Frankfurt, Daimler tumbled 5.64 percent after reporting a drop in its first-quarter profit and opening an investigation into its emissions testing process at the request of the U.S. Department of Justice.

Volkswagen weakened by 1.10 percent after reaching an agreement with the U.S. Environmental Protection over the diesel emission scandal.

In Paris, Renault surrendered 0.42 percent and Peugeot dropped 1.74 percent on concerns that the emission scandal could spread to more car makers. PSA Peugeot Citroen offices have been raided by anti-fraud squad as part of a probe into emissions.

Luxury group Kering plummeted 5.22 percent after its first-quarter sales trailed analysts' estimates.

Aerospace group Zodiac Aerospace soared 11.11 percent on a Bloomberg report that aircraft engine maker Safran is considering an offer for the company. Safran shares declined 2 percent.

In London, J Sainsbury climbed 1.25 percent after it was upgraded to "Buy" from "Hold" by Deutsche Bank.

Premier Foods decreased 0.64 percent after entering into a "relationship agreement" with Japanese noodle maker Nissin Food Holdings.

Darty advanced 0.93 percent as the bidding war for the electrical retailer intensifies.

Eurozone private sector activity remained sluggish at the start of the second quarter with the pace of expansion easing unexpectedly in April, as manufacturing growth failed to gain momentum and services activity improved less-than-expected.

The flash Composite Purchasing Managers' Index, or PMI, which combines manufacturing and services, fell to a two-month low of 53 from 53.1 in March, preliminary results of the latest Purchasing Managers' survey by Markit Economics revealed Friday. Economists had forecast a score of 53.3.

Germany's private sector expanded at the slowest pace in nine months in April, flash survey data from Markit showed Friday. The composite output index fell to a 9-month low of 53.8 in April from 54.0 in March.

The French private sector output expanded for the first time since January, flash survey data from Markit showed Friday. The flash composite output index rose to 50.5 in April from 50.0 in March.

British households perceived that the value of their home increased in April, survey figures from Markit Economics and Knight Frank showed Friday. The Knight Frank/Markit House Price Sentiment Index, or HPSI, dropped marginally to 60.1 in April from 60.5 in the previous month.