(MENAFN– ecpulse)
Most of European stocks tumbled on the opening Monday as Asian markets were beaten after a report confirmed stalling activity in China`s manufacturing sector.
The downbeat sentiment is kind of dominating the global stocks markets with the start of the week, as traders prepare to digest another round of first-tier economic data and earnings before the European Central Bank and the Bank of England rate decision on Thursday. Meanwhile, equities in Europe continue to take cues from their plunging counterparts in Asia.
As of 03:07 a.m. EST, the Stoxx Europe 600 was down 0.36% at 323.71, dragged the most by tech shares, which stripped 0.79% off the benchmark on the opening.
In China, the official Purchasing Managers` Index (PMI) fell to a six-month low of 50.5 in January from December`s reading of 51.00.
- Britain`s FTSE 100 fell 0.35% to 6,534.33
- France`s CAC 40 fell 0.46% to 4,183.56
- Germany`s DAX 30 fell 0.48% to 9,351.31
The drop in the PMI heightens concerns of an economic slowdown in the world`s second-largest economy, dragging on financial markets as tensions mount about ongoing political, currency and economic turmoil in some emerging markets, and the fact that US might hit its debt ceiling again this Friday, thus its clear this could be yet another choppy weak for markets.
On the currency front, the euro saw growing pressure for another policy easing in Europe, which slapped the 17-nation currency to multi-week low at $1.3485 this morning amid expectations the ECB might well ease at its meeting on Thursday.
Equities were still mixed after a row of European PMIs were out, although it confirmed a widening expansion in January. The manufacturing PMI remained unrevised at 54.0 last month from 52.7 in December.
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