By RTT News, November 01, 2013, 07:13:00 AM EDT
(RTTNews.com) - The European markets are trading lower on Friday, ahead of the manufacturing data out of the U.S. Markets in Asia ended mixed after China's factory growth hit an 18-month high as firms stepped up production.
The survey by the China Federation of Logistics and Purchasing and the National Bureau of Statistics revealed that the purchasing managers' index, a measure of factory sector performance, rose to 51.4 in October from 51.1 in September. Economists expected a more modest rise to 51.2.
Growth in British manufacturing activity eased slightly in October, a survey by Chartered Institute of Purchasing & Supply and Markit Economics revealed. The purchasing managers' index fell to 56 in October from a downwardly revised reading of 56.3 in September.
Meanwhile, the International Monetary Fund has urged Germany to keep in mind the interests of the international community while addressing Europe's policy challenges.
"While Germany and its European partners may have an understandable tendency to focus on this transition, there is much else going on in the world that will profoundly affect you and your economic interests," IMF's First Deputy Managing Director David Lipton said during a speech in Berlin on Thursday.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.40 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.14 percent.
The German DAX, the UK's FTSE 100 and Switzerland's SMI are dropping 0.2 percent each, while the French CAC 40 is declining 0.4 percent.
In Frankfurt, HeidelbergCement is falling 1.8 percent and E.ON is down 1.5 percent.
Wacker Chemie is falling 2.1 percent. Citigroup cut the stock to ''Sell'' from ''Neutral.''
Volkswagen is gaining 2.3 percent after JPMorgan raised its price target on the stock.
In Paris, Renault is declining 5.2 percent after its partner Japanese automaker Nissan Motor Co. cut its annual earnings forecast.
Air France-KLM is dropping 3.2 percent. Credit Suisse cut the stock to ''Underperform'' from ''Neutral.''
Technip and Pernod Ricard are falling 1.2 percent and 1.1 percent, respectively.
In London, Meggitt is declining around 10 percent. The aerospace, defence and energy group said underlying trading during July 1 to October 31 was slightly below expectations, amid short term production difficulties at Meggitt Sensing Systems and the timing of contract wins and project milestones in one of its energy businesses.
Royal Bank of Scotland is falling 5 percent. The lender reported a narrower loss for the third-quarter, but added that in light of its new strategy to deal with high risk assets, it expects a significant increase in impairments in the fourth quarter, which is likely to result in a substantial loss for the full year.
Vodafone is advancing over 2 percent on a report that US telecommunications giant AT&T is exploring a takeover of the company.
ASM International, which reported third-quarter results, is up 3 percent in Amsterdam.
Asian stocks pared early losses to end mixed on Friday, buoyed by encouraging manufacturing data out China.
In the U.S., futures point to a higher open on Wall Street. Markit is due to release the results of its U.S. manufacturing survey for October at 8:58 am ET and the Institute for Supply Management is scheduled to release the results of its national manufacturing survey for October at 10 am ET. Economists expect the manufacturing index to come in at 55, down from 56.2 in September.
In the previous session, U.S. stocks finished lower as investors pondered the likelihood of Fed tapering and digested upbeat economic data on jobless claims and Chicago-area business activity. The Dow fell half a percent, the tech-heavy Nasdaq slid 0.3 percent and the S&P 500 dropped 0.4 percent.
In the commodity space, crude for December delivery is falling $0.14 to $96.24 per barrel while December gold is losing $8.8 to $1314.9 a troy ounce.
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