European Shares Seen Higher On China Data
European stocks may open a tad higher on Tuesday after a private survey showed China’s factory activity expanded at the fastest clip in nearly a decade in August.
The Caixin/Markit Manufacturing Purchasing Managers’ Index rose to 53.1 from 52.8 in July amid the sharpest increase in output and new orders since 2011. New export work rose for the first time this year, while employment moved closer to stabilization.
Asian stocks gave up early gains to turn mixed amid a flare-up in India-China border tensions, rising diplomatic tensions between Canberra and Beijing and pledges of U.S. support for Taiwan. Oil prices rose on a falling dollar while gold steadied near two-week high.
Unemployment figures from Germany and euro area and Purchasing Managers’ survey results from major Eurozone economies are due later in the session, headlining a busy day for the European economic news.
U.S. stocks ended mixed overnight as investors fretted about U.S.-China tensions and data showed a surge in new coronavirus cases in several states across America.
Meanwhile, Federal Reserve Vice Chairman Richard Clarida said that rates will not be hiked just because the jobless rate is coming down.
The tech-heavy Nasdaq Composite rose 0.7 percent to reach record closing high, while the Dow Jones Industrial Average shed 0.8 percent and the S&P 500 slid 0.2 percent.
European markets fell notably on Monday as hopes of fresh stimulus from the European Central Bank faded and weak inflation data from Germany triggered concerns about the country’s economic recovery.
The pan European Stoxx 600 declined 0.6 percent. The German DAX gave up 0.7 percent and France’s CAC 40 index fell 1.1 percent while the U.K. market was closed for a holiday.
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