European stocks fall on China woes

European stock markets sank Tuesday by around three per cent, with the metals and mining sector hit hard by demand worries in China, dealers said.

The AFP reported that by early afternoon, London’s benchmark FTSE 100 index of top blue-chip companies shed 3.16 per cent to 6,050.39 points, as British investors returned from a long holiday weekend.

Frankfurt’s DAX 30 index dived 2.96 per cent at 9,956.30 points and the Paris CAC 40 dropped 2.92 per cent to 4,517.20 points.

Asian and European markets were rocked Tuesday by poor Chinese manufacturing data, not least in China, but also in the eurozone and Britain.

Sentiment also soured over the uncertain outlook for US interest rates, before a closely watched jobs report due on Friday.

“Another set of disappointing Chinese manufacturing data has prompted a lower open for UK and European stocks on Tuesday with a slowdown in Europe’s own manufacturing sector exacerbating the declines,” said CMC Markets analyst Jasper Lawler.

Sentiment took a heavy blow as poor Chinese manufacturing data gave further indications of a slowdown in the world’s second largest economy.

Source : Punch

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