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Europe stocks down amid global recovery fears; DAX falls 1.01%

Published 07/01/2010, 05:51 AM
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Investing.com – European stocks were down on Thursday in the wake of weak Chinese economic data and after rating's agency Moody's said it may downgrade Spain's debt rating.

During European morning trade, the EURO STOXX 50 was down 1.49%; France’s CAC 40 shed 1.88% and Germany's DAX fell 1.01%.

Late Wednesday, official data showed that China's purchasing manager's index fell more than expected in May. The news coming after weak U.S. jobs data earlier in the day undermined investor sentiment.

Also Wednesday, Moody's Investors Service said that it may downgrade their triple-A sovereign ratings on Spain due to deteriorating economic conditions.

In London, the FTSE 100 was down 1.22%.

Earlier Thursday, official data showed that the United Kingdom's manufacturing purchasing manager's index rose less than expected in May, increasing a seasonally adjusted 57.5, following an advance of 58 in April.

Analysts had expected an increase of 57.6 in May.

The outlook for U.S. equity markets, meanwhile, was dim: Dow Jones Industrial Average futures indicated a drop of 0.29%, S&P 500 futures pointed to a fall of 0.33% and Nasdaq 100 futures indicated a dip of 0.43%.

Later in the day, the U.S. was to release key data on initial jobless claims as well as data on pending U.S. home sales and a report on U.S. manufacturing prices.

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