European equities stumble on poor data; oil steadies

LONDON: Europe's main stock markets stumbled Friday on disappointing economic data heading into the weekend.

The oil market edged higher but remains on course for its fifth weekly decline, dogged by concerns over a stubborn supply glut.

European stock markets are "on the back foot, with a host of eurozone PMI surveys... providing a somewhat cautious assessment," said analyst Joshua Mahony at trading firm IG.

Eurozone private sector business activity slowed sharply in June but was still running at more than six-year highs, a closely watched survey showed on Friday.

Analysts said that while the downturn in the headline readings was disappointing, the economy continued to put in a strong performance.

Data monitoring company IHS Markit said its June Composite Purchasing Managers Index (PMI) came in at 55.7 points, the lowest reading in five months and down from 56.8 in May.

Any reading above the boom-bust 50 points line indicates the economy is expanding.

"After a string of exceptionally strong figures, the composite PMI for the eurozone has come down to earth in June," said UniCredit economist Edoardo Campanella.

"While the decline in the composite PMI was driven by a slowdown in the services industry, which is often subject to substantial monthly volatility, the manufacturing sector remains in good shape," he cautioned.

The PMI measures companies' willingness to invest in their business and so gives a good idea of how well the underlying economy is performing.

Asian stock markets limped into the weekend, with energy firms still struggling after a bruising few days.

Oil prices meanwhile bobbed higher after a tumultuous week which saw New York crude collapse to a ten-month low.

However, the price gains were relatively small as concerns over a global supply glut and US production overshadow output cuts by both OPEC and Russia.

The week's sharp losses have hurt energy firms and, despite another pick-up in the commodity, they continue to struggle.

Meanwhile, traders are tracking events in Washington where Republican Senators unveiled a revised healthcare bill to unpick Obamacare, which market players hope will be able to pass through Congress.

President Donald Trump is hoping the revised bill can open up a path for his economic agenda.