European Shares Fall on Disappointing Chinese Manufacturing Data
By Investors Hub
European stocks are broadly lower on Wednesday as Chinese manufacturing data disappointed and media reports suggested the Trump administration is considering imposing additional tariffs on Chinese imports.
The Federal Reserve’s policy decision also remains in focus, although no change to the fed funds rate is expected. The Bank of England announces its rate decision tomorrow, with analysts expecting a 25 basis point hike despite Brexit gloom.
Meanwhile, Eurozone manufacturing activity remained subdued at the start of the third quarter, as initially estimated, final data from IHS Markit showed. The factory PMI rose to 55.1 in July from 54.9 in June, in line with the flash estimate.
Elsewhere, data from IHS Markit and Chartered Institute of Procurement & Supply showed the U.K. manufacturing sector expanded at the slowest pace in three months in July.
While the French CAC 40 Index is just below the unchanged line, the German DAX Index is down by 0.6 percent and the U.K.?s FTSE 100 Index is down by 1.1 percent.
Among individual stocks, outsourcer Capita has plunged after lowering its profit guidance. Building materials company Compagnie de Saint-Gobain has also fallen on news the company has acquired Germany-based HKO for an undisclosed amount.
German engineering group Thyssenkrupp has also moved to the downside after cutting its profit guidance for the current year.
On the other hand, paper and packaging group Smurfit Kappa has rallied after it posted 5 percent revenue growth in the first half of the year.
Power provider Aggreko and lender Lloyds Banking Group have also moved notably higher after posting solid first-half results.
ArcelorMittal has advanced after its second quarter earnings topped forecasts, and Airline Air France-KLM has soared after its second quarter operating profit came in above expectations.
Dialog Semiconductor has also moved sharply higher in Frankfurt. The company said it has ended talks to buy Synaptics.