(MENAFN– ecpulse)
European stocks fell early Monday, as weak Chinese and German manufacturing data reignited concerns about the world economic recovery.
The opening trade was quite downbeat this morning in Europe, with all the benchmarks pointing to the south-side amid the ongoing tension between Ukraine and Russia, three days after Kremlin completed the seizure of Crimea, while today`s macro releases came only to weigh on the markets, with another disappointing PMI data from the euro area and China.
As of 05:20 a.m. ET, the Stoxx Europe 600 was down the 0.58% around 326, compared with Friday`s close at 327.91.
- London`s FTSE 100 fell 0.32% to 9,313.24
- Paris`s CAC 40 fell 0.47% to 4,314.72
- Frankfurt`s DAX 30 fell 0.14% to 6,547.96
Markets received a quite mixed tone about the world economic recovery this morning, with China`s Purchasing Managers` Index (PMI) suggesting factory activity in the world`s second largest economy faltered for a fifth consecutive month in March.
The flash Markit/HSBC Purchasing Managers` Index (PMI) fell to an eight-month low of 48.1 in March from February`s final reading of 48.5.
In Germany, the PMI release was disappointing, showing a reading of 55.0, below February`s 56.4, suggesting factory activity in Europe`s largest economy lost some steam as well.
The flash PMI was still below neutral-50 mark signaling deteriorating manufacturing activity.
The White House warned on Sunday that Russia is possibly preparing to invade eastern Ukraine, after Tony Blinken, a deputy national security advisor, sounded the alarm over an apparent buildup of Russian troops on the Ukrainian border.
On Monday, Russian soldiers took over a Ukrainian naval base in Crimea on Monday.
On Friday, the Russian President Vladimir Putin signed a low formalizing Crimea`s annexation, despite the sanctions and international outcry over his action on Ukraine.
Risks of a possible war over Ukraine help likely wreck markets sentiment further and pushing Europe`s major bourses lower through the session.
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