Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European Stocks Higher; PMI Data Indicate Slowing Recovery

Stock MarketsSep 23, 2021 04:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Peter Nurse 

Investing.com - European stock markets traded higher Thursday, despite business surveys indicating a regional slowdown, as sentiment surrounding the heavily indebted property group China Evergrande (HK:3333) improved and the Federal Reserve delayed tapering its asset purchases.

At  4:05 AM ET (0805 GMT), the DAX in Germany traded 1% higher, the CAC 40 in France rose 0.9% and the U.K.’s FTSE 100 climbed 0.5%.

Germany's economic recovery from the Covid-19 pandemic lost momentum in September, with its flash Purchasing Managers' Index showing growth in the manufacturing sector slowed to an eight-month low reading of 58.5 from 62.6 in August.

There was a similar story in France, as the country’s preliminary composite Purchasing Managers Index - factoring in both the services and manufacturing sectors - fell to 55.1 points in September from 55.9 in August.

Later in the session, the Bank of England announces its latest monetary policy decision later in the session, but the central bank is not expected to change its record-low interest rates or the extent of its asset purchases. The central bank of Norway, however, raised its key rate to 0.25%, becoming the first major advanced economy to do so since the pandemic. Turkey's central bank also meets later.

Global sentiment had improved following the conclusion of the latest Federal Reserve policy-setting meeting, when the U.S. central bank indicated that it will likely begin reducing its monthly bond purchases towards the end of this year. That was a positive surprise for the minority who had expected an immediate start to the withdrawal of the stimulus that has been supporting the economy during the pandemic.

Also helping the tone were solid gains in Chinese markets Thursday, after the People’s Bank of China injected more money into the banking system, easing concerns about the fallout from China Evergrande's debt crisis. 

In corporate news, Royal Mail (LON:RMG) stock dropped 0.7% after the group warned about rising costs while reporting a 9% fall in total parcel deliveries by volume across July and August. 

French car parts company Faurecia (PA:EPED) stock rose 6.7% even as it lowered its main 2021 financial targets due to a sharp reduction in worldwide automotive production on the back of a semiconductor chip shortage.

Crude prices edged higher Thursday, supported by another decline in U.S. oil stocks as production in the important Gulf of Mexico region remained hampered by the damage caused by two recent hurricanes, while U.S. crude stockpiles fell to a three-year low. 

By 4:05 AM ET, U.S. crude futures traded 0.1% higher at $72.27 a barrel, while the Brent contract gained 0.1% to $76.23. 

Additionally, gold futures fell 0.7% to $1,766.65/oz, while EUR/USD traded 0.2% higher at 1.1713.

 

European Stocks Higher; PMI Data Indicate Slowing Recovery
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Dave Jones
Dave Jones Sep 23, 2021 5:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
makes perfect sense
soho electronics
soho electronics Sep 23, 2021 5:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
please explain..... why did i spend 1000s of $$$$ in school if this makes sense??? lol
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email