The European markets fell for the first time in three days on Thursday after data showed the U.S. service sector unexpectedly contracted in last month and mining stocks edged lower after gold prices retreated.
The Institute for Supply Management in the U.S. said its index of activity in the service sector fell to 48.7 in November from 50.6 in October, with a reading below 50 indicating a contraction in the sector. Economists had been expecting the index to increase to a reading of 51.5.
The Labor Department said in its report that initial jobless claims edged down to 457,000 from the previous week's revised figure of 462,000. The decrease surprised economists, who had expected jobless claims to increase to 480,000 from the 466,000 originally reported for the week ended November 21st.
The European Central Bank left its key interest rate unchanged at a record low of 1% for the seventh straight month in December.
Crude for January delivery declined $0.02 to $76.58 a barrel on the New York Mercantile Exchange, by the time the European markets closed.
The FTSEurofirst 300 index of pan-European blue chips closed 0.16% lower at 1,014.20 points, while the narrower DJ Stoxx 50 fell 0.24% to 2,497.01 points.
Around Europe, the U.K.'s FTSE 100 index fell 0.27% to 5,313.00 and Germany's DAX index declined 0.20% to 5,770.35, while France's CAC 40 index rose 0.20% to 3,799.11.
Mining stocks edged lower after gold prices retreated from record highs. Nickel, lead, tin and zinc prices also fell in London. Anglo American, the world's second biggest miner, slipped 2.6%, while copper miner Antofagasta declined 1.6% and Xstrata, the world's fourth largest copper producer, dropped 3.8%.
Siemens, Germany's largest engineering company, slid 5.2% after the company reported a quarterly loss on writedowns at the telephone network venture with Nokia.
On the other hand, banking stocks gained after after Bank of America said it would repay $45 billion of taxpayer bailout funds. Barclays, Britain's third largest bank, climbed 5.4%, while Lloyds Banking Group, Britain's biggest mortgage lender, surged up 6.3% and Credit Suisse, Switzerland's second largest bank, rose 2.3%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.