European stocks slip on China concerns

LONDON Thu Mar 22, 2012 2:35pm IST

Traders concentrate on their screens at the Frankfurt stock exchange February 2, 2012. REUTERS/Alex Domanski/Files

Traders concentrate on their screens at the Frankfurt stock exchange February 2, 2012.

Credit: Reuters/Alex Domanski/Files

Related Topics

LONDON (Reuters) - European stocks slipped on Thursday, keeping the benchmark world equity index below recent 8-month highs, while the dollar was weaker against the yen as data showing China's factory activity shrank renewed concerns about global growth.

The HSBC flash PMI, the earliest indicator of China's industrial activity, fell to 48.1 in March from February's four-month high of 49.6, with new orders sinking to a four-month low.

It raises the prospect for a further monetary policy easing to help underpin growth, although lingering inflation risks put Beijing's policymakers in a dilemma.

"There is a concern, which I share, that we have a rather uneven recovery with the euro zone periphery in particular rather weak and former growth engines like China also not seeing a pronounced recovery," Gerhard Schwarz, head of equity strategy at Baader Bank, said.

"I would not say it's a deep correction (in equities)... Markets are over bought and looking for the next catalyst."

MSCI's main world equity index was steady on the day, having hit its highest level since August earlier in the week.

European stocks lost a third of a percent while emerging stocks were steady.

Brent oil was down 0.6 percent at $123.43 a barrel.

Bund futures gained 42 ticks, drawing in some safe-haven demand. The dollar lost a third of a percent to 83.15 yen although it was steady against a basket of major currencies. The euro was unchanged on the day at $1.3203.

(Additional reporting by Toni Vorobyova. Editing by Jeremy Gaunt.)

FILED UNDER:

"India's Daughter"

Reuters Showcase

Microfinance

Microfinance

Funding the unfunded: India helps small business borrow to grow  Full Article 

Insurance Sector

Insurance Sector

UK healthcare firm Bupa sees strong growth in India  Full Article 

Sensex Rises

Sensex Rises

Sensex edges up; consumer and healthcare stocks rise  Full Article 

Market Eye

Market Eye

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index   Full Article 

Indian Ocean Diplomacy

Indian Ocean Diplomacy

PM Modi to ramp up help for Indian Ocean nations to counter China influence  Full Article 

ECB Bond-Buying

ECB Bond-Buying

ECB raises growth forecasts, to start printing money next week  Full Article 

China Economy

China Economy

China signals "new normal" with lower annual growth target  Full Article 

Pharma Sector

Pharma Sector

Panel recommends waiving late-stage trials for some drugs  Full Article 

E-commerce

E-commerce

China backs e-commerce expansion in win for Alibaba, JD.com  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage