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European stocks sharply lower amid China worries; Dax down 2.22%

Published 09/01/2015, 03:36 AM
© Reuters.  European stocks tumble after China manufacturing data
UK100
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FCHI
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DE40
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STOXX50
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HSBA
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BARC
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NWG
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DBKGn
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CBKG
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BNPP
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SOGN
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BBVA
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SAN
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RIO
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BHPB
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ISA
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RR
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ISP
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CRDI
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ESZ24
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1YMZ24
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NQZ24
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GLEN
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EKTABs
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Investing.com - European stocks were sharply lower on Tuesday, as mixed manufacturing data from China added to concern's over the country's economy.

During European morning trade, the EURO STOXX 50 tumbled 2.04%, France’s CAC 40 retreated 2.02%, while Germany’s DAX 30 plummeted 2.22%.

Official data showed on Tuesday that China's manufacturing purchasing managers' index slipped to 49.7 in August fron 50.0 the previous month, while the Caixin manufacturing PMI ticked up to 47.3 last month from 47.1 in July.

Equity markets were also jittery after Federal Reserve Vice Chairman Stanley Fischer said Friday it was still too early to decide whether to raise interest rates from near zero at the bank’s September meeting.

Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) tumbled 1.71% and 2.23%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) lost 1.52% and 1.89%.

Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) declined 1.29% and 1.35% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) plummeted 1.52% and 1.28%.

On the upside, Elekta AB ser. B (ST:EKTABs) surged 5.43% after the Swedish maker of medical devices said it expects a return to growth in the second half of the year.

In London, FTSE 100 lost 1.29%, weighed by Rolls-Royce (LONDON:RR), whose shares tumbled 2.22%, after the luxury carmaker said it was cooperating with Brazilian authorities investigating bribery at state-owned oil giant Petrobras.

Financial stocks were also broadly lower, as Lloys Banking slid 1.06% and HSBC Holdings (LONDON:HSBA) declined 1.17%, while Barclays (LONDON:BARC) and the Royal Bank of Scotland (LONDON:RBS) plummeted 1.26% and 1.43% respectively.

Mining stocks added to losses, with shares in Bhp Billiton (LONDON:BLT) and Rio Tinto (LONDON:RIO) tumbling 1.52% and 1.53% respectively, while rival company Glencore (LONDON:GLEN) plunged 1.75%.

Meanwhile, Inmarsat PLC (LONDON:ISA) led gains on the index for the second consecutive session, with shares up 2.04% after the UK satellite operator launched a spacecraft on Friday that completes global internet coverage for a network that could offer customers faster connections at far lower costs.

In the U.S., equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a 1.73% decline, S&P 500 futures signaled a 1.82% drop, while the Nasdaq 100 futures indicated a 2.18% loss.

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