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Tuesday, September 23, 2014, 16:42

Global stocks off but China rebounds

By Associated Press

BEIJING - Global stocks were mostly lower Tuesday following Wall Street's tumble but China rebounded after unexpectedly strong manufacturing eased fears of an economic slowdown.

KEEPING SCORE: France's CAC-40 shed 0.6 percent to 4,416.71 and Germany's DAX lost 0.3 percent to 9,715.35. Britain's FTSE 100 fell 0.8 percent to 6,722.25. The Dow Jones industrial average and Standard & Poor's 500 looked set for further declines, with futures for both off 0.2 percent.

CHINA FACTORIES: A preliminary version of HSBC's purchasing managers' index showed 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.

THE QUOTE: "Growth in (Chinese) industry edged up somewhat in September, thus providing a modicum of comfort to policymakers and markets. Looking ahead, the short-term outlook for organic growth is modest but not alarming,'' said Louis Kuijs of Royal Bank of Scotland in a report.

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. India's benchmark fell and Southeast Asian markets were mixed.

EUROPE DATA: Germany, the continent's biggest economy, was expected to show an improvement in its purchasing managers' index after disappointing August figures. France reports quarterly economic growth that is expected to show a modest improvement over the previous quarter's flat performance. The French purchasing managers' index was expected to show improvement but still a contraction in manufacturing and services activity.

ENERGY: Benchmark US crude was up 30 cents at US$91.18 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, gained 22 cents to US$97.19 on the ICE in London.

CURRENCIES: The dollar declined to 108.44 yen from Monday's 108.77 yen. The euro rose to US$1.2858 from US$1.2850.

 
 
 
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