Sep 23, 2014 4:15 AM
Global stocks off but China rebounds
The Associated Press
BEIJING (AP) Global stocks were mostly lower Tuesday following Wall Street's tumble but China rebounded after unexpectedly strong manufacturing eased fears of an economic slowdown.
KEEPING SCORE: France's CAC-40 shed 0.6 percent to 4,416.71 and Germany's DAX lost 0.3 percent to 9,715.35. Britain's FTSE 100 fell 0.8 percent to 6,722.25. The Dow Jones industrial average and Standard & Poor's 500 looked set for further declines, with futures for both off 0.2 percent.
CHINA FACTORIES: A preliminary version of HSBC's purchasing managers' index showed unexpectedly strong Chinese manufacturing in September, helping to ease fears of a sharper slowdown in the world's second-largest economy. The PMI rose to 50.5 from August's 50.2 on a 100-point scale on which numbers above 50 indicate expansion. That exceeded forecasts that called for a decline due to a slump in China's real estate market, a major driver of manufacturing activity.
THE QUOTE: "Growth in (Chinese) industry edged up somewhat in September, thus providing a modicum of comfort to policymakers and markets. Looking ahead, the short-term outlook for organic growth is modest but not alarming," said Louis Kuijs of Royal Bank of Scotland in a report.
ASIA'S DAY: The Shanghai Composite Index gained 0.9 percent to 2,309.72 and Sydney's S&P ASX 200 was up 1 percent at 5,415.70. Hong Kong's Hang Seng shed 0.3 percent to 23,879.36 and Seoul's Kospi fell 0.5 percent to 2,028.91. Tokyo was closed for a holiday. India's benchmark fell and Southeast Asian markets were mixed.
EUROPE DATA: Germany, the continent's biggest economy, was expected to show an improvement in its purchasing managers' index after disappointing August figures. France reports quarterly economic growth that is expected to show a modest improvement over the previous quarter's flat performance. The French purchasing managers' index was expected to show improvement but still a contraction in manufacturing and services activity.
ENERGY: Benchmark U.S. crude was up 30 cents at $91.18 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, gained 22 cents to $97.19 on the ICE in London.
CURRENCIES: The dollar declined to 108.44 yen from Monday's 108.77 yen. The euro rose to $1.2858 from $1.2850.