European markets cautious, eye weekly gain, despite Brexit

The stocks on the European bourses traded range bound to moderately higher on the final trading day of the week, but remains on track for the first weekly rise in five weeks, despite the Brexit debacle.

With a major turnaround seen in the risk conditions in Europe, the European equities stalled its post-Brexit winning streak and now trade on the back foot as the risk assets such as oil, copper take a hit, weighing down on the energy and resource sector stocks on the indices. Moreover, a brief profit-taking stint cannot be ruled out as the Brexit vote turns a week old.

However, downside remains cushioned on the back of upbeat PMI readings across the Euro zone and in the UK. The German manufacturing PMI climbed to 54.5 in June, up from 52.1 seen in May, while that in the 19-nation bloc accelerated to six-month highs of 52.8 versus 51.5 last. The UK factories data surprised to the upside, coming in at 52.1 last month, up from the 50.1 in May.

Germany's DAX 30 index trades modestly flat at 9,681, while the UK's FTSE 100 index trades +0.26% at 6,520. French CAC 40 index drops -0.11% to 4,232, while the Euro Stoxx 50 index slips -0.18% to 2,858.