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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

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