Market Buzz: Concerns escalate over slow China growth, US mfg data
Most Russian stocks ended Monday lower following weak
performances on Asian and European floors: The MICEX finished
0.95 percent lower at 1337.0, while the RTS lost 0.93 percent to
close at 1319.0.
European stocks likewise posted sharp losses on Monday, plunging to their lowest closing levels for the past month over weak manufacturing data from the US and escalating concerns on Chinese growth.
The HSBC released its final reading on China’s manufacturing PMI, which fell to 49.2 from a preliminary reading of 49.6, pointing to a slowdown in the manufacturing sector. However, the official PMI rose to 50.8 from 50.6; most Asian markets saw losses amid the contradictory data.
In Europe, the manufacturing PMI for the eurozone climbed to 48.3 from 46.7 in April, its highest level in 15 months. In Spain, the PMI rose to a 24-month high of 48.1, while Italy’s climbed to its highest level in four months at 47.3. A reading above 50 indicates economic expansion.
The Stoxx Europe 600 index lost 0.8 percent to close at 298.59. The UK's FTSE 100 was down 0.9 percent, Germany's DAX lost 0.8 percent and France's CAC 40 slid 0.7 percent. Turkish stocks also saw a significant slump following anti-government protests in Istanbul.
US stocks rose, though the US Dollar fell after fresh data revealed that the US manufacturing sector contracted for the first time in six months. The Institute for Supply Management reported a 49 PMI, down from 51 last month; the news has raised concerns about the recovery of the US economy.
The Dow Jones Industrial Average rose 0.92 percent to 15,254.03, the S&P 500 was up 0.59 percent to 1,640.42 and the Nasdaq advanced 0.27 percent to 3,465.37.
Asian stocks traded mixed Tuesday. Japan's Nikkei 225 jumped 1.5 percent to 13,456.39 following a Bank of Japan report that the country’s monetary base increased 31.6 percent in May over the expected 24.3 percent, after gaining 23.1 percent in April.
Hong Kong's Heng Seng fell 0.3 percent to 22,219.48 and South Korea's Kospi fell 0.3 percent to 1,983.55. Benchmarks in mainland China, Singapore, the Philippines, Indonesia and Thailand also fell. Australia's S&P/ASX 200 rose 0.2 percent to 4,989.90, and India's benchmark Sensex also rose.
Oil is currently lower, with Brent down 0.2 percent to $101 and WTI down 0.3 percent to $93.