By RTT News, October 01, 2013, 12:01:00 PM EDT
(RTTNews.com) - The majority of the European markets finished in positive territory on Tuesday, despite the partial shutdown of the U.S. government. The markets appear to have already priced the shutdown in, as evidenced by their recent weakness. Investors continue to monitor the political situation in Italy, where Prime Minister Enrico Letta is expected to hold a confidence vote on Wednesday.
Republicans and Democrats were unable to reach a last minute agreement on a new temporary spending bill, resulting in a partial government shutdown at midnight. The Republican-controlled House passed a bill that would have kept the government running but delayed the implementation of Obamacare.
However, the Democratic controlled Senate rejected the legislation, resulting in the first government shutdown in seventeen years.
The partial government shutdown caused the U.S. construction spending data to not be released today. It has already been announced that Friday's highly anticipated U.S. jobs report for September will not be released.
Chinese manufacturing activity expanded at a slightly faster rate in September, with business activity across the sector seeing a modest pickup, a survey by the China Federation of Logistics and Purchasing, or CFLP, and the National Bureau of Statistics showed Tuesday.
The headline purchasing managers' index, or PMI, rose to 51.1 in September from 51 in August. Economists had forecast a steeper increase in the index to 51.6.
The Euro Stoxx 50 index of eurozone bluechip stocks increased by 1.18 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.33 percent.
The DAX of Germany climbed by 1.10 percent and the CAC 40 of France advanced by 1.28 percent. The SMI of Switzerland gained 0.45 percent, but the FTSE 100 of the U.K. fell by 0.03 percent.
In Frankfurt, Commerzbank increased by 3.24 percent and Deutsche Bank rose by 1.65 percent.
BMW climbed by 1.81 percent and Daimler added 0.66 percent.
Merrill Lynch added RWE as ''Underperform'' to '' Top 10 EMEA Ideas of Q4.'' The stock finished higher by 0.56 percent.
Aixtron rose by 0.39 percent. The stock was downgraded to ''Sell'' from ''Hold'' at Canaccord.
In Paris, Renault advanced by 1.65 percent. The company reported an 18 percent increase in new French car registrations. Peugeot added 4.16 percent.
In London, consumer goods giant Unilever forecast slower underlying sales growth of 3 percent to 3.5 percent in the third quarter, citing a slowdown that has accelerated in emerging markets. The stock declined by 3.36 percent.
Findel, which issued a trading update, dropped by 1.01 percent.
Wolseley gained 3.10 percent. The plumbing and heating products distributor reported a sharp increase in annual profit and its board recommended a special dividend.
Philips climbed by 2.08 percent in Amsterdam, after UBS added the stock to ''European Engineering Most Preferred List.''
Telecom Italia gained 5.16 percent in Milan. Goldman Sachs reinstated coverage on the stock with a "Buy" rating.
Merrill Lynch added Nokia to ''Most Preferred Tech Shares List.'' The stock rose by 2.31 percent in Helsinki.
Eurozone's manufacturing sector expanded at a slower pace in September, final results of a survey by Markit Economics confirmed Tuesday. The headline purchasing managers' index edged down to 51.1 in September from August's 26-month high of 51.4. The outcome matched the flash estimate released last month.
The Eurozone unemployment rate held steady below a record high in August in a sign that the labor market is improving slightly as firms plan recruiting to meet a recovery in demand. The unemployment rate was 12 percent of the labor force for the second consecutive month in August, figures published by Eurostat showed Tuesday. The rate for July was revised down from a record 12.1 percent.
The jobless rate was 12.1 percent in both May and June. Economists had forecast the unemployment rate to stay unchanged at 12.1 percent in August.
Germany's manufacturing sector expanded at a slower pace in September than estimated earlier, revised data from a survey by Markit Economics and BME showed Tuesday. The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector dropped to 51.1 in September from 51.8 in August. The flash estimates were for a reading of 51.3.
Germany's unemployment rate rose to seasonally adjusted 6.9 percent in September from 6.8 percent in August, the Federal Labor Agency showed Tuesday. The rate was expected to remain unchanged at 6.8 percent.
The British manufacturing sector continued its strong performance in September, but activity grew at a slightly slower pace than in the previous month, survey data released by Markit Economics and the Chartered Institute of Purchasing and Supply (CIPS) showed Tuesday.
The seasonally adjusted purchasing managers' index for the manufacturing sector dropped to 56.7 in September from 57.1 in August, which was revised down from 57.2. The August reading was the highest in two-and-half years.
Activity in the U.S. manufacturing sector expanded for the fourth consecutive month in September, according to a report released by the Institute for Supply Management on Tuesday, with the index of activity in the sector showing an unexpected increase.
The ISM said its purchasing managers' index edged up to 56.2 in September from 55.7 in August, with a reading above 50 indicating growth in the manufacturing sector. Economists had been expecting the index to dip to 55.0.
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