Stock markets in Europe in retreat after soft economic data, airstrikes in Syria

bug


We also have more stories about:
(click the phrases to see a list)

Subjects:

Places:

 

Photos:


FILE - This July 15, 2013, file photo, shows a sign for Wall Street outside the New York Stock Exchange, in New York. Global stocks were mostly lower Tuesday, Sept. 23, 2014, following Wall Street's tumble but China rebounded after unexpectedly strong manufacturing eased fears of an economic slowdown. (AP Photo/Mark Lennihan, File)


FILE - In this Feb. 10, 2011, file photo, American flags fly in front of the New York Stock Exchange, in New York. Stock markets fell Monday, Sept. 22, 2014, ahead of a preliminary manufacturing survey from China that might show renewed weakness in the world's second-largest economy. (AP Photo/Mark Lennihan, File)


LONDON — European stock markets fell sharply Tuesday after some disappointing economic news and U.S.-led airstrikes against Islamic State militants in Syria. The falls came despite an unexpectedly strong Chinese manufacturing survey that helped ease worries in Asia over the state of the world's number 2 economy.

KEEPING SCORE: In Europe, France's CAC-40 fell 1.9 percent to 4,359 while Germany's DAX was 1.3 percent lower at 9,621. The FTSE 100 index of leading British shares was down 1.4 percent at 6,680. Wall Street was poised for some modest falls at the open with both Dow futures and the broader S&P 500 futures down 0.2 percent.

EUROPE STAGNATING : The tone in European stock markets wasn't helped by further evidence showing that the 18-country eurozone economy is failing to find any renewed momentum. In its monthly survey, financial information company Markit said its purchasing managers' index for the eurozone — a closely watched gauge of business activity — fell to a nine-month low of 52.3 in September from the previous month's 52.5.

AIRSTRIKES IN SYRIA: Further weighing on sentiment in stock markets is the news that the U.S. and five Arab nations attacked the Islamic State group's headquarters in eastern Syria in nighttime raids. Land- and sea-based U.S. aircraft as well as Tomahawk cruise missiles launched from two Navy ships in the Red Sea and the northern Persian Gulf were used.

ANALYST TAKE: "The escalation of the conflict will of course raise questions over the risk appetite of many within the markets, who are no doubt worried about a major war which appears to be unfolding," said Joshua Mahoney, research analyst at Alpari.

CHINA FACTORIES: Earlier, HSBC's purchasing managers' index showing unexpectedly strong Chinese manufacturing in September, helping to ease fears of a sharper slowdown in the world's second-largest economy. The PMI rose to 50.5 from August's 50.2 on a 100-point scale on which numbers above 50 indicate expansion. That exceeded forecasts that called for a decline due to a slump in China's real estate market, a major driver of manufacturing activity.

ASIA'S DAY: The Shanghai Composite Index gained 0.9 percent to 2,309.72 and Sydney's S&P ASX 200 was up 1 percent at 5,415.70. Hong Kong's Hang Seng shed 0.3 percent to 23,879.36 and Seoul's Kospi fell 0.5 percent to 2,028.91. Tokyo was closed for a holiday.

CURRENCIES/ENERGY: The euro was up 0.3 percent at $1.2890 while the dollar fell 0.2 percent to 108.51 yen. In the oil markets, a barrel of benchmark crude rose 72 cents to $91.59.

All content copyright ©2014 Daily Journal, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Click here to read our privacy policy.