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Shares set to fall after weak China manufacturing data
September 1, 2015 / 6:07 AM / 2 years ago

Shares set to fall after weak China manufacturing data

LONDON (Reuters) - European stocks were seen falling at the open on Tuesday after weak manufacturing data from China raised fresh concerns over the health of its economy and hit Asian markets.

A sales manager points to the decline in value of German DAX stocks on a screen at Allianz Global Investors in Paris, France, August 24, 2015. REUTERS/Regis Duvignau

Activity in China’s manufacturing sector contracted at its fastest pace in three years in August, an official survey showed on Tuesday, reinforcing fears of a sharper slowdown in the world’s second-largest economy despite a flurry of government support measures.

Shares in Asia fell following the data.

“At a time when the People’s Bank of China is already making big efforts to shore up the economy, this is very concerning,” Craig Erlam, senior market analyst at OANDA, said in a note.

“It’s no surprise that people expect the economy to slow well below 7 percent in the second half of the year, unless of course we see further monetary and fiscal stimulus measures, which is likely.”

Futures on the Euro STOXX 50, Germany’s DAX, France’s CAC and Britain’s FTSE were 2.2-1.3 percent lower at 0601 GMT.

Investor caution over Chinese growth contributed to a drop in European shares in August, with the pan-European FTSEurofirst 300 chalking up its biggest monthly loss in four years on Monday.

Britain’s stock market will re-open after being closed for a public holiday on Monday.



Bayer is pushing ahead with a listing of its Material Science division. “We are on track, I am not concerned about China,” the division’s chief, Patrick Thomas, told German daily Rheinische Post. An IPO is planned by mid 2016.


Manz AG said it received an order for a production line for lithium-ion batteries with a sales volume of around 12 million euros. The agreement contains the option for additional production in the USA and China. The orders will impact revenues and earnings in the current fiscal year and in some cases in the coming year, Manz said.


The Swiss crop chemicals maker said it has won U.S. approval for its fungicide solatenol, adding global peak sales could reach $1 billion. [SYNN.VX]


The drugmaker said it received EU approval for Tafinlar and Mekinist, the first combination approved for patients with an aggressive form of melanoma. [NOVN.VX]


UBS said it has completed its SESTA procedure and will pay a supplementary dividend of 0.25 Swiss francs on Sept. 22. It’s also starting a new marketing campaign with celebrity photographer Anne Leibowitz.


Italian private equity firm Investindustrial has been discussing for months with French luxury group Kering a possible purchase of its Sergio Rossi shoe brand but a deal is still far away, a source close to the matter said on Monday.


European telecoms group Altice on Monday named sector expert Michel Combes as its chief operating officer and as chairman of its Numericable-SFR mobile phone business to help accelerate its expansion.


French outdoor advertising company JCDecaux buys a 70 percent stake in Peru’s advertising company Eye Catcher Media, with founding shareholders Luiz Felipe Mauger and Miguel Claux, retaining a 30 percent stake in company.


The construction group said after market close on Monday that it would pay its first dividend in four years this year and aimed to nearly double its core profit between 2016 and 2020, marking its recovery from Spain’s deep economic crisis.


To partner with Valeant on brodalumab product. Under the terms of the agreement, Valeant will make an upfront payment to Astrazeneca of $100 million.


Punch Taverns ees full-year profits in line with management expectations.

AGA - Receives approach regarding possible cash offer from Whirlpool Corporation.

VIRGIN MONEY - CFO Lee Rochford steps down.

ROYAL DUTCH SHELL - Says Puget Sound refinery units normal after power blip.


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S&P 500 1,972.18 -0.84 % -16.69

NIKKEI 18355.88 -2.83 % -534.6

MSCI ASIA EX-JP 400.33 -0.82 % -3.31

EUR/USD 1.1272 0.54 % 0.0061

USD/JPY 120.63 -0.49 % -0.5900

10-YR US TSY YLD 2.186 -- -0.01

10-YR BUND YLD 0.807 -- 0.01

SPOT GOLD $1,142.40 0.73 % $8.30

US CRUDE $47.69 -3.07 % -1.51

Reporting by Alistair Smout

Our Standards:The Thomson Reuters Trust Principles.
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