RTTNews - The European markets fell for the second day on Tuesday, as a mixed batch of economic data heightened investor concerns that the global economic recovery may be weaker than expected.
The final Markit Eurozone manufacturing PMI for the Eurozone rose more than initially estimated to 48.2 in August, a survey from the Markit Economics showed. The index stood above July's 46.3 and the flash estimate of 47.9. The final reading came in above the flash for the fifth month running. However, the index stood below the no-change mark of 50 for the 15th month in a row suggesting contraction in manufacturing.
However, UK manufacturing sector unexpectedly shrunk in August, a key survey by the Chartered Institute of Purchasing and Supply and Markit Economics said on Tuesday. The manufacturing Purchasing Managers' Index dropped to 49.7 in August from 50.2 in the previous month. The July reading was revised from 50.8 reported initially. Economists were looking for a higher reading of 51.5 for August. A reading above 50 indicates expansion, while a level below 50 signals a contraction.
Net lending to Britons in July fell at its sharpest pace since records began in 1993, even as the number of mortgages approved rose to its highest since April 2008, Bank of England figures showed.
The seasonally adjusted Eurozone jobless rate rose to 9.5% in July from 9.4% in June, data released by the Eurostat showed Tuesday. That was in line with economists' expectations and the highest rate since May 1999. It was 7.5% a year ago.
The Institute for Supply Management in the U.S. said its manufacturing index jumped to 52.9 in August from 48.9 in July, with a reading above 50 indicating an expansion in the sector. With the increase, the index rose to its highest level since June of 2007.
The National Association of Realtors in the U.S. said its pending home sales index rose 3.2% to 97.6 in July from a reading of 94.6 in June. With the increase, which exceeded economist estimates of 1.5% growth, the index rose to its highest level since June of 2007.
The U.S. Commerce Department said in its report that construction spending fell 0.2% in July following a downwardly revised 0.1% increase in June. Economists had expected spending to fall 0.2% compared to the 0.3% increase originally reported for the previous month.
Crude for October delivery fell $1.07 at $68.89 a barrel on the New York Mercantile Exchange, by the time the European markets closed.
The FTSEurofirst 300 index of pan-European blue chips closed 1.84% lower at 954.15 points, while the narrower DJ Stoxx 50 index fell 2.01% to 2,353.20 points.
Around Europe, the U.K.'s FTSE 100 index fell 1.82% to 4,819.70, while France's CAC 40 index slipped 1.92% to 3,583.44 and Germany's DAX index dropped 2.51% to 5,327.29.
Economy sensitive banking stocks were among the biggest losers. HSBC, Europe's largest bank, slipped 4.2%, while BNP Paribas, France's biggest lender, dropped 3.8% and Deutsche Bank, Germany's largest bank, fell 3.2%. Lloyds Banking Group, Britain's biggest mortgage lender, lost 4.8%.
Heavily weighted oil stocks lost ground after crude oil prices declined. BP, Europe's biggest oil company, dropped 2.4%, while Royal/Dutch Shell, the second biggest, fell 1.4% and Total, the third biggest, slipped 1.8%.
Similarly, mining stocks edged lower on softer metals prices. BHP Billiton, the world's biggest miner, fell 2.6%, while Anglo American, the second biggest, dropped 4.9% and Rio Tinto, the third biggest, slipped 3.4%. Copper miner Antofagasta lost 4%.
Royal Philips Electronics, Europe's largest maker of consumer electronics, dropped 4.5% after Stoxx Ltd. said the company will be removed from the Euro Stoxx 50 index.
Nokia, the world's biggest mobile phone maker, fell 2.9% after Credit Suisse downgraded the stock to underperform from outperform.
For comments and feedback: contact firstname.lastname@example.org