European stocks ended mixed yesterday following volatile trading as stable US manufacturing data helped outweigh dismal figures from Europe, while the euro slid against the dollar.
London’s FTSE 100 index of leading companies ended the day up 0.45 per cent at 5,418.65 points and in Paris the CAC 40 gained 0.28 per cent to 3,265.83 points. Frankfurt DAX dropped 0.94 per cent, however, to 5,784.85 points.
In foreign exchange deals, the European single currency sank to a two-and-a-half week low of $1.4227. It later rallied back to $1.4262 but was still down from $1.4374 late in New York on Wednesday. The dollar rose to 76.91 yen after 76.62 yen.
European stocks sagged early in the day after the release of data showing eurozone manufacturing hit reverse gear in August, tumbling to a two-year low, in a fresh sign the economy is slowing fast.
The eurozone manufacturing purchasing managers’ index compiled by Markit fell to 49.0 points in August from 50.4 in July. Any score below 50 indicates contraction, while anything above suggests expansion.
Only Germany, the Netherlands and Austria posted manufacturing growth, with France, Italy and Spain slumping into negative territory. British manufacturing tumbled to a 26-month low of 49.0 points in August, although that beat market expectations for a reading of 48.5 according to analysts polled by Dow Jones Newswires.
However, London’s FTSE-100 got a boost from a surge in banking stocks on a report in the Financial Times that a reform of the British banking system to better separate investment and retail banking activities following the 2008-2009 financial crisis would not get underway until 2015.
European markets later rebounded following data showing that the US manufacturing sector had avoided a contraction and was still growing.
Wall Street was flat approaching midday, with the Dow up 0.14 per cent to 11,629.35 points. The broader S&P 500 index nudged up 0.01 per cent to 1,218.97 points while the tech-heavy Nasdaq composite added 0.21 per cent to 2,584.86 points.
Elsewhere in Europe, Brussels and Swiss stocks nudged up 0.05 per cent, Amsterdam climbed 0.35 per cent, Madrid gained 0.49 per cent and Milan rose 0.69 per cent. Lisbon dipped 0.26 per cent.
Asian markets mostly rose on Thursday, extending a recent rally, with Tokyo climbing 1.18 per cent, Sydney adding 0.26 per cent and Hong Kong 0.25 per cent. Seoul was flat and Shanghai lost 0.44 per cent.
Gold rose to $1,821 from $1,813.50 on Wednesday.