Tuesday, 01 September 2015 12:44
LONDON: Europe’s stock markets sank in opening deals on Tuesday as investors fretted once again over the state of the flagging Chinese economy.
In initial trade, London’s benchmark FTSE 100 index of top companies shed 0.96 percent to 6,187.93 points, as British investors returned after a long holiday weekend.
And in the eurozone, Frankfurt’s DAX 30 fell by a hefty 1.81 percent to 10,073.74, while the Paris CAC 40 dropped 1.43 percent to 4,586.33 points.
Asian equities also slid Tuesday as disappointing Chinese manufacturing data gave further indications of a slowdown in the world’s second largest economy.
China’s statistics bureau said its Purchasing Managers’ Index (PMI) of manufacturing activity came in at 49.7 last month, its lowest since August 2012.
While the figure is better than last week’s preliminary private reading from Chinese media group Caixin — which hit a six-and-a-half-year low — it is still below the 50-point mark that indicates contraction.
The indexes are seen as key barometers of the Asian giant’s economic health, a key driver of global growth.
World stock markets were hammered last week as risk-averse investors dumped shares over panic that a Chinese economic slowdown could spark a new global recession.
