LONDON: Europe's main stock markets and the euro slid on Thursday following unexpectedly weak eurozone economic data and after disappointing Chinese figures, analysts said.
London's FTSE 100 benchmark index of leading shares dropped 0.91 percent to 5,838.01 points approaching midday in the British capital.
Frankfurt's DAX 30 slumped 1.46 percent to 6,968.40 points and in Paris the CAC 40 shed 1.66 percent to 3,468.73.
The euro dropped to $1.3157 from $1.3213 late in New York on Wednesday.
IG Index traders said "weak macro-economic data from around the world" was weighing on markets.
"Misses on Chinese and eurozone PMI data are never conducive to bullish sentiment, given how tetchy everyone is at present about Chinese growth and the eurozone crisis.
"To have all the figures come in below expectations was bound to hit markets, with stock indices under pressure across the (European) continent," he added.
Eurozone private sector activity fell more sharply than expected in March, indicating that the 17-nation single currency area slid back into recession, a key survey showed on Thursday.
Manufacturing output and service sector activity experienced their worst performances in three and four months respectively this month, according to the composite purchasing managers' index (PMI) compiled by Markit research firm.
"The eurozone economy contracted at a faster rate in March, suggesting that the region has fallen back into recession, with output now having fallen in both the final quarter of last year and the first quarter of 2012," said Markit chief economist Chris Williamson.
The downturn, however, is "very mild," with the PMI signalling a contraction of around 0.1 and 0.2 percent.
In China, manufacturing activity fell to a four-month low in March, HSBC bank said on Thursday, adding fuel to concerns over slowing growth in the world's second largest economy.
HSBC's preliminary PMI fell to 48.1 in March from 49.6 in February, following a sharp slowdown in exports, the British banking giant said in a statement.
A reading above 50 means expansion, while below 50 suggests contraction.
The Chinese data weighed heavily on the mining sector, as China is a huge consumer of raw materials.
Shares in Randgold Resources slumped 12.96 percent to 5,735 pence, although the Africa-focused miner was also hit by a military coup in Mali, traders said.
Vedanta Resources dropped 4.66 percent to 1,289 pence and steel group ArcelorMittal lost 2.95 percent to 14.98 euros.
Asian stock markets earlier closed mixed as traders responded to a surprise trade surplus from Japan as well as the weak data out of China.
Tokyo ended with a gain of 0.40 percent, while Shanghai fell 0.10 percent.
Wall Street had ended broadly lower overnight after the National Association of Realtors reported sales of previously owned homes, the biggest segment of the depressed US housing market, dipped 0.9 percent in February.
Comments
Comments are closed for this article.