European markets firm after eurozone data
October 5, 2009
Europe's main stock markets crept upwards on Monday, despite losses elsewhere, with modest support stemming from positive eurozone economic data, dealers said.
The FTSE 100 index added 0.05 percent to 4 991.32 points in late morning London trade.
Frankfurt's DAX 30 gained 0.17 percent to 5 476.92 points and in Paris the CAC 40 advanced 0.10 percent to 3 653.66 points near the half-way stage.
The DJ Euro Stoxx 50 index of top eurozone shares advanced 0.34 percent to 2 770.09.
On the foreign exchange market, the European single currency increased to $1.4615.
Private sector business activity in the 16-nation eurozone grew in September with manufacturing and services each gaining on initial estimates, a closely-watched survey showed on Monday.
The final purchasing managers' index (PMI) for the 16 countries using the single currency, compiled by data and research group Markit, rose to 51.1 points from 50.4 in August when it ended 14 months of decline. The flash estimate pegged it at 50.8.
"The eurozone purchasing managers services survey confirmed that business activity expanded for the first time in 16 months in September," said IHS Global Insight economist Howard Archer.
But he added: "Nevertheless, the eurozone services sector is by no means completely out of the woods yet as it still faces serious obstacles such as muted consumer expenditure, limited business spending and ongoing financial sector problems.
"Indeed, it is notable the rate of improvement in the business activity index slowed in September."
In Asia on Monday, Japanese stocks fell to the lowest level in almost 11 weeks as an unexpected surge in US job losses added to worries about the global economic outlook.
Tokyo's benchmark Nikkei-225 index dropped 0.59 percent to 9 674.49 points, the weakest close since July 21.
Hong Kong shares closed little changed as bargain hunting by investors offset concerns about the pace of a US economic recovery, analysts said.
Wall Street shares fell Friday for the fourth consecutive session as a US government report showing an unexpected surge in the number of job losses in September prompted further retrenchment by investors.
The Dow Jones Industrial Average shed 0.23 percent to close at 9 487.67 points.
Sentiment was depressed by Friday's news that the US economy shed 263 000 jobs in September, after a revised loss of 201 000 in August, with the unemployment rate rising to 9.8 percent.
Investors may remain cautious this week ahead of the US corporate earnings season, starting with Wednesday's results from aluminium giant Alcoa. - AFP
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