Wednesday, 24 October 2012 13:54
LONDON: Signs of stabilisation in China's slowing economy helped lift European shares on Wednesday, though gains were kept in check by weak corporate earnings worldwide.
The China HSBC Flash Manufacturing Purchasing Managers Index (PMI) rose to a three-month high of 49.1 in October, but is still below the 50-point mark which separates contraction from expansion.
European shares opened around 0.1 percent higher after the data with London's FTSE 100 also about 0.1 percent up while the German DAX and Paris's CAC-40 rose 0.4 percent.
But these gains could come under pressure later if initial readings of euro area purchasing managers' indexes and the German Ifo business sentiment survey point to further deterioration in the region's weak economy.
"The HSBC manufacturing PMI has calmed markets a bit in Asia, but more important for Europe would be the European PMI's as well as the Ifo business climate data. I remain cautious in the short run," Unicredit ...