"The euro zone is being buffeted by major headwinds"
- Howard Archer, chief European economist at IHS Global Insight
European manufacturing and services industries contracted in May. A composite index based on a survey of purchasing managers in manufacturing and services sectors declined to 45.9 from 46.7 in April, said the Markit Economics on Thursday.
"The euro zone is being buffeted by major headwinds, notably increased fiscal tightening in many countries and markedly rising unemployment," said Howard Archer, chief European economist at IHS Global Insight in London.
"The heightened Greek crisis is magnifying the problems by weighing down on already weak and fragile business and consumer confidence, adding to uncertainty about the outlook."
The Stoxx Europe 600 Index added 1.00 per cent to 241.91. Germany's DAX Index rose 0.48 per cent and France's CAC 40 Index gained 1.16 per cent. The U.K.'s FTSE 100 Index climbed 1.59 per cent to 5,350.05.
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