European Markets Down on Weak PMI Surveys

By Investors Hub

European stocks have moved modestly lower on Tuesday as weak PMI surveys from the eurozone raised fresh worries about the outlook for global growth.

The euro area manufacturing sector contracted at the fastest pace in nearly seven years as output, new orders and purchasing fell sharply in September, final data from IHS Markit showed. The final manufacturing Purchasing Managers’ Index dropped to 45.7 in September from 47.0 in August.

Germany’s manufacturing sector contracted the most since the global financial crisis in 2009, while French manufacturing activity remained broadly stable. The U.K. manufacturing purchasing managers index rose to a four-month high in the month.

While the U.K.?s FTSE 100 Index is just below the unchanged line, the German DAX Index and the French CAC 40 Index are both down by 0.1 percent.

AstraZeneca has fallen after it agreed to sell the global commercial rights, excluding China, Japan, the U.S. and Mexico, for Losec (omeprazole) and associated brands to Cheplapharm.

Alcoholic beverages company Diageo has also moved to the downside after launching a SEC-registered bond offering.

On the other hand, automaker Renault and car parts maker Faurecia have moved higher after French car manufacturers’ body CCFA said the decline in its domestic market should slow down this year and end 2019 at stable levels.

Tech stocks are also moving higher as JP Morgan raised its iPhone volume forecasts for the September and December quarters.